Forex Market Analysis: Key Currency Pairs and Gold Price Forecast

Scalping: Scalping is a trading style that focuses on profiting from tiny price movements. In this strategy, traders look for small profits in a very short time frame, and a 3 PIP move can be a target. This type of trading requires precise execution and quick decision-making.
Day Trading: Day trading is another strategy that involves monitoring short-term price movements, where traders seek to profit from minor fluctuations. Traders may use the 3 PIP target to enter or exit positions based on short-term trends.

Overview of Forex Market Trends

Today's Forex market has shown dynamic shifts influenced by various geopolitical and economic factors. The US Dollar's performance is notably mixed, facing depreciation against multiple currencies. Meanwhile, Gold continues its ascension, fueled by rising safe-haven demand amidst global uncertainties.

Gold Price Movement

Gold (XAUUSD) has witnessed a significant breakout, surpassing the $3366.02 mark, targeting the next resistance at $3435.06. This surge is primarily attributed to heightened safe-haven demand amid increasing geopolitical risks and uncertainties surrounding the Federal Reserve's policies. Furthermore, fresh tariff threats and the escalation of the Ukraine conflict have propelled Gold prices, with the precious metal opening higher in early trading sessions and continuing its upward trajectory.

USD and Major Currencies

The US Dollar (USD) has shown weakness against several major currencies. The USD/CNH pair indicates a potential stabilization, with resistance unlikely to exceed 7.2180. Conversely, USD/JPY has declined for three consecutive days due to the rising demand for safe-haven assets, with the currency pair fluctuating within a narrow range. The Euro (EUR/USD) has reached a four-week high, supported by trader expectations ahead of the ECB's interest rate decision. Similarly, the British Pound (GBP/USD) and the Australian Dollar (AUD/USD) have capitalized on the USD's defensive posture, with GBP/USD potentially setting new multi-year highs and AUD/USD approaching the 0.6500 level.

Canadian Dollar and Asian Markets

The Canadian Dollar (CAD) has reached its best levels since October, bolstered by strong GDP data and expectations of a hawkish stance from the Bank of Canada. In Asian markets, the Japanese Yen has strengthened against the Euro, with EUR/JPY experiencing a drop due to ongoing trade-related uncertainties and geopolitical risks.