Daily Price Outlook

During the Asian trading session on Thursday, the USD/JPY currency pair continued its upward movement, reaching levels not seen since November 2022, trading within the range of 147.80 to 147.85. This uptrend is primarily attributed to the strength of the US dollar, which is currently near its highest point in six months. However, the driving factor behind this strength is the growing anticipation of further interest rate hikes by the Federal Reserve.

On the other side, there are concerns about potential currency intervention by Japanese authorities, and overall market sentiment remains cautious. This caution is leading investors to seek the safety of the Japanese yen (JPY), acting as a safe-haven currency. As a result, the substantial advances in the USD/JPY pair are somewhat limited.

Strong US Economic Data Boosts USD/JPY Pair

The broad-based US dollar is gaining traction and remained strong, reaching a six-month peak following the release of encouraging US economic data. This robust performance is notably boosting the USD/JPY pair. The US Institute for Supply Management (ISM) Services Purchasing Managers' Index (PMI) for August exceeded even the most optimistic predictions, surging to 54.5, marking the highest level since February. A deeper look into the report reveals an increase in new orders and businesses reporting higher prices, indicative of a resilient US economy and persistent inflation pressures.

These developments have boosted the prospect of the Federal Reserve (Fed) implementing an interest rate hike in November. Hence, the expectation that the Fed will maintain higher rates for an extended period is underpinning elevated US Treasury bond yields and providing further support to the US dollar and contributes to the USDJPY pair gains.

JPY Underperforms Due to BoJ's Dovish Stance and Intervention Fears

Across the ocean, the Japanese Yen (JPY) is struggling due to the Bank of Japan's (BoJ) persistent commitment to loose monetary policies, which discourages bullish positions on the USD/JPY pair. There's also concern that Japanese authorities might intervene in the forex markets to strengthen the JPY. Japan's top currency diplomat, Masato Kanda, issued a warning about the JPY's depreciation and the possibility of measures against speculative activities.

This, along with a cautious equity market sentiment, boosts the JPY's safe-haven appeal and limits USD/JPY pair gains. In the meantime, investors seems worried about rising borrowing costs and a slowdown in China, reducing appetite for riskier assets.

USD/JPY - Technical Analysis

The USD/JPY pair encountered a brief downtrend, touching the 147.00 barrier, before regaining momentum in an attempt to continue its anticipated bullish trajectory in both the intraday and short-term scopes.

The positive forecast remains grounded, bolstered by the EMA50 which underpins the price. It's essential to note that a breach of the 146.55 level might instigate a temporary bearish correction before the price ascends once more.

For today, the projected trading spectrum is demarcated between the support at 147.00 and the resistance at 148.40

Daily Price Outlook

Gold price (XAU/USD) managed to stop its three-day losing streak and gained some fresh traction on Thursday. However, this uptick can be attributed to a combination of factors, including a generally pessimistic sentiment in the stock markets, concerns about China's economic situation, and ongoing trade tensions. As of now, the XAU/USD pair is hovering just below the $1,920 mark, posting a modest gain of nearly 0.15% for the day.

It's worth noting that the equity markets are showing signs of weakness, prompting investors to seek refuge in safe-haven assets such as gold. Moreover, worries about the worsening economic situation in China and the ongoing trade disputes between the United States and China are lending support to the XAU/USD pair. On the other hand, there are expectations of more interest rate hikes by the Federal Reserve, which could boost the value of the US dollar and potentially limit the upside for gold.

Gold Gains Support Amidst China Concerns and Trade Tensions

As we mentioned above, the ongoing concerns about China's worsening economic conditions and long-lasting US-China trade tensions are having a noticeable impact on investor sentiment. This is evident in the overall weaker performance of equity markets. These factors, in turn, are bolstering the safe-haven appeal of precious metals like gold. Furthermore, the subdued performance of the US Dollar is offering additional support to the price of gold. However, it's important to note that despite these factors, a significant upward move in gold prices remains relatively inaccessible at this point.

US Economic Strength and Fed Rate Hike Expectations Impacting XAU/USD

On the flip side, the outlook for the US economy appears to be influencing the trajectory of the US dollar and, consequently, the performance of the XAU/USD pair. The Institute for Supply Management (ISM) reported a surprising acceleration in business activity within the US services sector for August, with the non-manufacturing PMI rising from 52.7 in July to 54.5 last month, marking its highest level since February.

Moreover, the report revealed an increase in new orders, indicating strength in the US economy, and a higher Prices Paid sub-component, hinting at lingering inflation pressures. These developments have raised the probability of another 25 basis points Fed rate hike by year-end, causing the yield on the 10-year US government bond to approach its August 23 peak and pushing the USD to its highest level since March 9. These factors are expected to limit any significant correction in the US dollar and cap potential gains for XAU/USD.

GOLD(XAU/USD) - Technical Analysis

Gold prices have distinctly retraced, approaching the anticipated primary target level at $1,913.15. Current indicators suggest an ongoing decline, potentially reaching the vicinity of $1,890.00, especially after surpassing the preceding benchmark.

Given this backdrop, we project a bearish trajectory in the near future, further underscored by the downward pressure exerted by the EMA50. It's imperative to highlight, however, that any breach above the $1,929.00 mark could halt the anticipated downtrend and prompt an intraday price recovery attempt.

Today's projected trading range lies between a support at $1,900.00 and a resistance at $1,930.00.

Daily Price Outlook

The EUR/USD currency pair improved its position on Wednesday, moving away from the recent low of around 1.0700. In the previous session, the US Dollar had reached a six-month high near 105.00 against the Euro. However, the USD faced some selling pressure and slipped to a range of 104.80-104.70. Hence, the US Dollar's decline from its six-month high against the Euro on Wednesday led to an improvement in the EUR/USD currency pair. Despite rising US yields, the Euro gained ground, suggesting increased demand for the Euro relative to the US Dollar, resulting in a higher EUR/USD exchange rate.

ECB Council Member's Rate Hike Perspective and Market Reaction

Klaas Knot, a member of the European Central Bank (ECB) Governing Council, suggested in a Bloomberg interview that people who don't expect an interest rate increase next week might be underestimating the possibility of it happening. However, he clarified that it's not guaranteed, just a chance. Knot also stressed that reaching the 2% inflation target by the end of 2025 is the minimum goal. Despite potential economic slowdown, inflation projections are expected to remain similar to those in June. The market response has been muted, and the Euro is trading modestly higher against the US Dollar, hovering between 1.0730 and 1.0725.

Eurozone Retail Sales and Euro Performance

Eurostat's official data for July showed a 0.2% drop in retail sales in the Eurozone, compared to a 0.2% increase in June, falling short of the expected -0.2%. Yearly retail sales declined by 1.0% in July, matching the previous month's -1.0% and slightly beating expectations of -1.2%. Surprisingly, the Euro's performance remained relatively stable, trading at 1.0733, marking a modest 0.11% daily increase, despite the disappointing retail sales figures.

Recent Global Economic Trends

Apart from this, German Factory Orders suffered a significant setback in July, with a year-on-year decline of -11.7%, far worse than the expected -4.0% and a sharp contrast to the previously revised figure of 7.6%. The monthly figures didn't fare any better, dropping by -10.5% compared to the earlier 3.3%. These disappointing indicators align with the downbeat Eurozone Producer Price Index for July and ECB's inflation concerns.

In contrast, the United States saw more positive news, with Factory Orders, excluding transport, increasing by 0.8% despite an overall drop of -2.1% month-on-month in July. Strong shipments and rising inventories also contributed. Moreover, support from Federal Reserve Governor Christopher Waller for a hawkish monetary policy and Cleveland Federal Reserve President Loretta Mester's rejection of rate cuts strengthened the US Dollar.

Furthermore, concerns about more stimulus for China's struggling real estate sector boosted property shares, shifting market sentiment and offering some support to the EUR/USD pair.

EUR/USD - Technical Analysis

The EUR/USD pair currently displays a modest bullish inclination, influenced by the positive momentum indicated by the stochastic. This could lead to interim intraday appreciations before resuming a downward trajectory.

At present, the predominant bearish trend remains intact, exemplified by the descending channel visible on the chart and augmented by the downward pressure from the EMA50. We anticipate that a breach of the 1.0700 mark would pave the way for an ascent towards 1.0635.

Conversely, it's imperative to highlight that surpassing the 1.0785, followed by the 1.0825 thresholds, would disrupt the bearish narrative, prompting the price to embark on short-term recovery efforts. Today's trading is anticipated to oscillate between a support at 1.0640 and a resistance at 1.0790, with the dominant sentiment leaning bearish.

Daily Price Outlook

The AUD/USD currency pair has found support around the mid-0.6300s for the second day in a row and is recovering slightly from its lowest point since November 2022, which it reached this Wednesday. However, it's struggling to break above the 0.6400 level during the early European session. The pair strives to rebound from its year-to-date low, but its upward momentum remains limited. However, the slightly improved Australian GDP provides some relief as demand for the US dollar remains subdued. However, concerns loom over China's economic outlook, restraining any substantial gains, with traders awaiting the US ISM Services PMI for clearer market direction.

USD Pauses, Australian GDP Boosts AUD/USD

However, the US Dollar is taking a breather after its recent climb to a six-month high. This pause, combined with a positive Australian GDP report, is prompting some short-covering in the AUD/USD currency pair. It is worth noting that the Australian Bureau of Statistics revealed that the economy grew by 0.4% from April to June, slightly exceeding the expected 0.3% and surpassing the previous quarter's 0.2% growth. On an annual basis, it came in at 2.1%, just below the 2.3% seen in the first quarter. This better-than-expected economic performance in Australia is contributing to the Aussie dollar's recovery against the US dollar.

AUD/USD Faces Challenges Amid China Worries and US-China Trade Tensions

Meanwhile, the AUD/USD pair is struggling to gain bullish momentum due to concerns about China's worsening economic situation. Furthermore, the ongoing trade tensions between the US and China are capping the gains of the Australian Dollar, which is often seen as a proxy for China's economic performance. In the latest news, US Secretary of Commerce Gina Raimondo mentioned that she doesn't anticipate any changes to the tariffs imposed on China by the previous US administration until the current review by the US Treasury is completed.

Therefore, these factors, combined with the expectation that the Reserve Bank of Australia (RBA) will not raise interest rates further, are weighing on the Australian Dollar.

RBA Holds Steady, Fed Rate Expectations Favor USD

Furthermore, the Australian central bank has maintained its Official Cash Rate at 4.10% for the third consecutive month, signaling a pause in its policy tightening. In contrast, the market anticipates a 25 basis point rate hike by the Federal Reserve (Fed) in 2023, bolstering US Treasury bond yields and the US dollar. Moving on, traders await the US ISM Services PMI release in the early North American session and monitor US bond yields, which will influence the US dollar and create short-term trading prospects.

AUD/USD - Technical Analysis

The AUD/USD pair concluded its trading below the 0.6400 mark yesterday, reinforcing the anticipated bearish trajectory for both intraday and short-term periods, with a clear path towards our target of 0.6300.

The enduring influence of the bearish flag pattern underscores the projected decline, complemented by the downward pressure exerted by the EMA50. It's pivotal to highlight that any surge beyond 0.6400 could disrupt this bearish outlook, prompting the price to initiate a recovery phase.

For today's trading, we project a range bracketed by a 0.6310 support level and a 0.6410 resistance threshold, with prevailing sentiment tilting bearish.

Daily Price Outlook

Gold price (XAU/USD) has extended its recent downtrend, marking a third consecutive day of negative performance after touching a nearly one-month high in the $1,952-$1,953 range last week. During the Asian trading session, XAU/USD slipped to a low not seen in over a week but has failed to sustain significant follow-through, currently hovering near the $1,925 mark with a marginal decline of less than 0.10% for the day. However, the decline is primarily attributed to the prevailing hawkish expectations surrounding the Federal Reserve, which are bolstering US bond yields and thereby supporting the US dollar, thus contributing to the decline in gold prices. Nevertheless, a cautious market sentiment may deter traders from aggressively pursuing bearish positions.

Fed's Rate Outlook and Dollar Strength Impacting Gold

It's important to note that the Federal Reserve is expected to keep interest rates higher for a while, which makes the US Dollar stronger and pushes down Gold prices. This also means that US Treasury bond yields stay high, giving more strength to the Dollar and making Gold less attractive. Even though the Fed might pause rate hikes in September, there's still a chance of one more increase later in the year. This maintains high US Treasury bond yields, supporting the Dollar and putting pressure on Gold. However, Gold is finding some support as a safe-haven asset due to concerns about China's slowing services sector affecting global markets.

China's Economic Concerns and US-China Trade Tensions Impacting Gold

Besides this, there's growing concern about China's slowing services sector, with a recent private survey revealing its slowest growth in eight months. Thus, this raises worries about the weakening Chinese economy and makes riskier investments less attractive. In the meantime, the ongoing trade tensions between the US and China could also boost interest in Gold as a safe-haven asset. US Secretary of Commerce Gina Raimondo mentioned that the current tariffs on China won't change until a US Treasury review is completed.

So, it's wise to wait for stronger selling pressure before assuming Gold's recent rebound from its March low has ended and taking aggressive bearish positions on XAU/USD. Traders are now watching the US ISM Services PMI release for potential impact on the USD and Gold's direction.

GOLD(XAU/USD) - Technical Analysis

The price of gold remains on a declining course, approaching the pivotal support mark set at $1,923. This threshold mirrors the broken neckline of the clear double bottom pattern illustrated on the chart, acting as a barrier to further price drops.

The lingering effects of the recently culminated double top pattern are palpable, enhancing the prospects of the gold price declining past the noted support, steering towards our chief target at $1,913.15. As a result, our forecast is inclined towards a bearish trend in the near term. Importantly, if there's a breach of the $1,929 level, it might trigger a price reversal, ushering in a brief recovery with potential intraday upswings aiming for $1,945.20.

For today's trading, we anticipate a range bordered by the $1,913 support and $1,940 resistance, maintaining a bearish stance.

Daily Price Outlook

The AUD/USD currency pair has been unable to halt its ongoing decline, edging closer to the year-to-date low reached in August. However, the downward trend can be attributed to a combination of factors. The weaker economic data from China and the Reserve Bank of Australia's decision to maintain its current interest rates have exerted downward pressure on the Australian Dollar. Simultaneously, the US Dollar has surged to its highest level in over three months, further contributing to the sharp decline in the AUD/USD pair.

AUD Weakening Amid China Concerns and RBA's Hold on Rates

It's worth noting that the Australian Dollar (AUD) started weakening due to concerns about China's slowing services sector, as a private survey showed its slowest growth in eight months, with the Caixin/S&P Global Services PMI dropping from 54.1 to 51.8 in August. This raised worries about China's economic health, dampening investor appetite for riskier assets and leading to aggressive selling of the AUD/USD pair.

Meanwhile, the Reserve Bank of Australia (RBA) stuck to its wait-and-see approach, keeping the Official Cash Rate (OCR) steady at 4.10% for the third consecutive month. The RBA mentioned that some further tightening might be needed to control inflation, aiming for the 2-3% target range by mid-2025.

Hence, the lack of fresh signals hinting at more rate hikes has fueled speculation that the tightening cycle could be ending, failing to impress bullish traders or support the AUD/USD pair.

USD Strength and Fed Rate Expectations Impact AUD/USD Pair

Furthermore, the drop in the AUD/USD pair can also be attributed to renewed demand for the US Dollar (USD), which has gained strength due to increasing expectations that the Federal Reserve (Fed) will maintain higher interest rates for an extended period. Despite some indications of a softening labor market in the US, markets are still factoring in the chance of another 25 basis points Fed rate hike by year-end.

This outlook drives US Treasury bond yields higher and propels the USD to a three-month high, intensifying the bearish sentiment surrounding the AUD/USD pair.

AUD/USD - Trade Idea

The AUD/USD pair has commenced today's trading session on a distinctly bearish note, evidenced by its breach of the intraday bullish channel's support. This development is suggestive of a bearish flag pattern, which is anticipated to exert downward pressure on the pair in forthcoming sessions. Initial objectives center on the 0.6400 mark, with a breach of this level potentially accelerating the pair's descent toward the 0.6300 milestone.

In light of these dynamics, a bearish outlook is projected for today, further substantiated by the pair's position below the EMA50. It's imperative to note, however, that any inability to penetrate the 0.6400 barrier could interrupt this bearish narrative, prompting a price recovery.

Today's anticipated trading spectrum is demarcated by a support level at 0.6360 and resistance at 0.6445.

Daily Price Outlook

Gold price (XAU/USD) failed to stop its losing streak and dropped for the second straight day on Tuesday. The XAU/USD is currently trading just below the $1,940 level, down less than 0.10% for the day. The combination of factors is contributing to this downward pressure on gold. However, the optimism over more stimulus from China continues to weigh on the safe-haven metal. In the meantime, the Fed is expected to maintain higher interest rates for an extended period. This policy stance supports elevated US Treasury bond yields, which, in turn, provide some strength to the US Dollar (USD). Consequently, this strength in the USD acts as a deterrent for gold, given that gold is a non-yielding asset.

Gold Price Outlook Amidst Fed Policy and Labor Market Dynamics

Despite indications of an improved US labor market, the Federal Reserve is anticipated to persist with its policy of maintaining higher interest rates for an extended period. In fact, some market analysts are even contemplating the possibility of a 25 basis point rate hike by year-end. This situation supports elevated US Treasury bond yields and strengthens the US Dollar while putting downward pressure on non-yielding Gold prices.

At the same time, the central bank is likely to maintain interest rates at their current levels during its September meeting. This decision is primarily attributed to the mixed nature of the US job data, where a better-than-expected Non-Farm Payrolls (NFP) figure was offset by a downward revision of the previous month's data and an unexpected uptick in the unemployment rate. Besides, Average Hourly Earnings declined from 4.4% to 4.3% annually, signaling a minor weakening in the labor market. This restrained room for the Fed to raise rates further keeps USD bulls cautious and lends support to Gold priced in US Dollars.

Therefore, it's prudent to wait for sustained selling to confirm whether the recent recovery from the $1,885 level, the lowest since March 13, has concluded and whether aggressive bearish bets on XAU/USD are justified.

China's Stimulus Measures and Positive Risk Sentiment Impact Gold

Furthermore, optimism about China's potential stimulus measures to bolster its economic recovery weakens demand for the safe-haven XAU/USD. China recently injected more US dollars into its economy and eased mortgage rules to aid the property sector, with Country Garden Holdings postponing some payments. China's National Development and Reform Commission (NDRC) plans to create a department to support the private economy, boosting investor confidence. However, the downside for Gold prices appears limited due to expectations that the Federal Reserve is approaching the end of its interest rate hike cycle.

GOLD(XAU/USD) - Technical Analysis

The gold price faced resistance at the $1,945.20 threshold, subsequently pivoting to a bearish trajectory and descending past the $1,938.50 marker. This sets the stage for anticipated downward dynamics in ensuing sessions. This movement is underscored by the manifestation of a double top formation, indicating bearish objectives, initially targeting the $1,929.00 mark. A breach here could set sights on a primary target at $1,913.15.

Given this context, a bearish inclination is projected for today. However, it's crucial to note that a successful move beyond $1,945.20 could reinvigorate the bullish trend, steering the precious metal toward $1,960.00 as a subsequent focal point. The anticipated trading band for today spans a support level of $1,920.00 and a resistance at $1,945.00.

Daily Price Outlook

The USD/JPY currency pair continued its upward trajectory for the third consecutive day on Tuesday, maintaining its positive stance. During the early European session, the pair surged above the mid-146.00s, presently hovering near 146.72, marking a 0.16% gain for the day. Several key factors contributed to this upward momentum. Firstly, Japanese Household Spending witnessed a significant decline, which weighed on the Japanese yen's strength, thereby bolstering the US dollar's position.

Secondly, the mixed US employment data created a sense of uncertainty regarding the Federal Reserve's tightening policy, causing market participants to revise their expectations. Thirdly, upbeat manufacturing PMI data added to the dollar's strength, further supporting the USD/JPY pair.

Investors are now anticipating coming economic releases, including US Factory Orders, US ISM Services PMI, and Japanese Gross Domestic Product (GDP), which may provide additional insights into the currency pair's future movements.

Positive Impact of Weak Japanese Household Spending on USD/JPY Pair

According to recent data, Japanese household spending experienced its sharpest decline in almost two and a half years, with a 5.0% year-on-year drop in July, surpassing the expected 2.5% decrease. This marked the sixth consecutive month of decline. Meanwhile, Japanese Monetary Base data for August showed a 1.2% year-on-year increase, a shift from the previous 1.3% drop.

However, the Bank of Japan (BOJ) is maintaining its loose monetary policy and moving away from yield curve control, with BOJ Board member Toyoaki Nakamura emphasizing the need for more time before considering monetary tightening. However, the divergence in monetary policies between the US and Japan may limit potential downsides for the USD/JPY pair.

Japanese Finance Minister Shunichi Suzuki mentioned that while sudden currency fluctuations are undesirable, there is no current sign of market intervention to support the weakening yen, although they will closely monitor currency movements. Hence, Japan's weak household spending and the BOJ's loose monetary policy have positively impacted the USD/JPY currency pair, contributing to its ongoing rise, supported by policy divergence and a lack of yen-supportive interventions.

Impact on USD/JPY Pair Amid Mixed Economic Data

Apart from this, the mixed US economic data from last week has led to expectations of a more cautious stance from the Federal Reserve (Fed), which is affecting the USD/JPY pair. The CME FedWatch Tool indicates a 93% likelihood that interest rates will remain unchanged in September, with a 38% chance of a rate hike in November.

However, August's Nonfarm Payrolls exceeded expectations at 187K, but the Unemployment Rate dropped to 3.8%. US Manufacturing PMI also outperformed predictions at 47.6. Today, the US dollar's gains are limited as Wall Street observes Labor Day.

USD/JPY - Technical Analysis

The USD/JPY pair has opened today's trading session on an upbeat note, successfully surpassing the 146.55 mark and making endeavors to consolidate above this level. This movement suggests a potential cessation of the recent bearish correction, with the pair positioning to realign with its prevailing bullish trajectory. The anticipated upward targets are set initially at 147.55, progressing to 148.40 as a subsequent focal point.

The EMA50 underpins the pair, bolstering the bullish perspective. This optimistic outlook will persist unless there's a decline below the 146.55 level, further intensified by a drop beneath the 145.95 threshold. For the day, the trading range is projected between a support at 146.10 and resistance at 147.60.

Daily Price Outlook

The price of gold (XAU/USD) continued its upward trend on the first day of the week, climbing steadily above the $1,945 mark during the Asian session. It remains close to a one-month high, around $1,952-$1,953, reached on Friday, and looks set to build on its recent recovery from a low point in August when it touched $1,885. However, this upward rally was mainly driven by expectations that the Federal Reserve (Fed) will keep interest rates unchanged in its September policy meeting, providing support for XAU/USD. In contrast to this, the positive sentiment in the market may restrain bullish investors from making aggressive moves and could limit further gains in gold.

US Jobs Report Favors Gold as Fed Holds Rates Steady

It's worth noting that the most recent monthly jobs report from the United States has created a situation in which the Federal Reserve (Fed) is likely to keep interest rates unchanged at its September meeting. This development is seen as positive news for the gold market. According to the latest report, in August, the US economy added 187,000 jobs, surpassing expectations, but the previous month's numbers were revised down from 187,000 to 157,000. Moreover, the unemployment rate increased from 3.5% in July to 3.8% in August, and the yearly wage growth dropped slightly from 4.4% to 4.3%. Hence, this data suggests a less robust job market and could limit the Federal Reserve's ability to raise interest rates.

Thereby, the broad-based US dollar is currently lacking significant support, despite its recent strength, and this is playing in favor of Gold's price. It's a well-known fact that a weaker US dollar tends to stimulate demand for commodities such as Gold since they are denominated in dollars. However, it's crucial to note that the decline in the US dollar is not anticipated to be overly steep because there remains a prevailing belief in the market that the Federal Reserve may hike interest rates by another 25 basis points before the year concludes. This expectation is maintaining strong demand for US Treasury bonds and the US Dollar.

Moreover, the positive sentiment in the stock market is exerting a restraining influence on the upward trajectory of the safe-haven precious metal, Gold. This is due to investors demonstrating a clear preference for riskier assets over the traditionally secure haven that Gold represents.

China's Economic Boost and Market Sentiment Impact on Gold

Moreover, China is taking steps to boost its economy by creating a special department to help private businesses and making it simpler for people to borrow money and purchase homes. Meanwhile, because it's a bank holiday in the US and there's no major economic news, investors are feeling more comfortable taking risks in the markets. This means they might not be rushing to buy a lot of Gold at the moment.

GOLD(XAU/USD) - Technical Analysis

Having reached a temporary trough near the $1,935 mark, gold has exhibited a marked uptick in recent trading, making a notable push towards the $1,945.20 threshold. This upward trajectory suggests a revival of the primary bullish momentum, a sentiment further buoyed by the recently observed double bottom pattern. This paves the way for potential ascents, with initial targets set at $1,960, potentially extending to $1,977.25.

Given these dynamics, the prevailing sentiment leans towards a bullish disposition for the day's trading. This stance finds reinforcement in the EMA50's underpinning of the price trajectory. However, it's imperative to note that any inability to sustain levels above $1,945.20 could stall the bullish momentum, leading to potential intraday retracements. For the day, the anticipated trading span is delineated by a support level at $1,935 and resistance at $1,965.

Daily Price Outlook

The EUR/USD currency pair is trading at around 1.0782, slightly up by 0.05% today. This increase is mainly because the US dollar is weaker due to expectations that the Federal Reserve will stop raising interest rates. On the other hand, the European Central Bank's Governor, Pierre Wunsch, mentioned that it's too soon to stop raising rates in the Eurozone. This has also contributed to the EUR/USD pair going up.

ECB Statements Influence EUR/USD Outlook

Belgian Central Bank Governor and ECB member Pierre Wunsch suggested the ECB could take more actions in its monetary policy. He mentioned that the ECB will need to "pause the policy" at some point, but it's too early to discuss completely stopping interest rate hikes. Another ECB policymaker, Francois Villeroy de Galhau, stated that they are getting close to the highest point for interest rates, but they're not thinking about cutting rates anytime soon. In simpler terms, they might make some more changes to the policy, but they're not ready to stop raising rates or lower them at this moment.

Thus, these statements imply that the ECB is open to further monetary actions but is cautious about ending rate hikes. This could bolster confidence in the Euro (EUR) as investors see potential support for its value, potentially leading to a positive impact on the EUR/USD currency pair.

US Economic Data Boosts EUR/USD

If talking about US data, in August, the Nonfarm Payrolls (NFP) report showed 187,000 new jobs, beating expectations of 170,000 and surpassing July's 157,000. The Unemployment Rate dropped to 3.8%, lower than the expected 3.5%. However, Average Hourly Earnings only rose by 0.2%, slightly less than the anticipated 0.3%. Furthermore, the US Manufacturing PMI improved to 47.6 from the previous 46.4, better than the expected 47.0. These numbers make some think that the Federal Reserve may stop raising interest rates. Consequently, the US Dollar began losing momentum, which in turn supported gains for the EUR/USD currency pair.

Looking ahead, the US market is closed for Labor Day. Investors will pay attention to the German Trade Balance and Eurozone Sentix Investor Confidence reports. Apart from this, speeches by German Buba President Joachim Nagel and ECB President Lagarde will be watched closely. These events will influence trading decisions involving the EUR/USD pair.

EUR/USD - Technical analysis

The EUR/USD pair experienced a significant drop last Friday, reaching and surpassing our anticipated target of 1.0785. Notably, the daily candlestick closed below this level, suggesting a potential continuation of the downward trajectory in the subsequent sessions. This could pave the way for the pair to approach the next bearish target of 1.0700.

Given these developments, our short-term and intraday forecasts maintain a bearish outlook, bolstered by the downward momentum indicated by the EMA50. It's crucial to highlight that if the price breaches the 1.0785 mark and stabilizes above it, we might see an onset of recovery efforts, with an initial target set at the 1.0785 region.

Today's projected trading range lies between the support level of 1.0700 and the resistance level of 1.0845.