Market Anticipation for Central Bank Meetings Keeps Gold Steady (07.30.2024)

Check our daily analysis for support and resistance levels of the stated trading instruments. Find valuable insights about Gold, EUR/USD, USD/JPY, and GBP/USD. Stay ahead of market trends with our expert commentary and detailed chart analysis. 

Gold stabilized near $2,380 per ounce on Tuesday after losses in the previous session, as investors await key central bank policy meetings. The Federal Reserve is expected to keep rates unchanged on Wednesday, with potential hints of a September rate cut. The Bank of Japan is anticipated to raise rates by 10 basis points to 0.1%, while opinions are divided on the Bank of England's actions. Traders also await important US economic data, including non-farm payrolls, expected to show 185,000 new jobs and steady unemployment at 4.1%, with 0.3% wage growth.

The Japanese yen held steady around 154 per dollar as the BoJ began its two-day meeting. Markets expect a 10 basis point rate hike to 0.1% and reduced bond purchases. The yen has risen since mid-July, initially due to suspected government intervention and later supported by the unwinding of carry trades and safe-haven buying. Japan's unemployment rate unexpectedly dropped to 2.5% in June, while the jobs-to-applicants ratio was slightly weaker at 1.23.

The dollar index remained above 104.5, close to a two-week high, as investors anticipated the Fed's policy decision. The Fed is expected to keep rates steady on Wednesday while signaling a possible September rate cut. Last week, the headline PCE price index met expectations, but core rates were slightly higher. The US economy grew by 2.8% in Q2, surpassing forecasts. Traders will focus on June job openings and July consumer confidence, with the monthly jobs report on Friday.

EUR/USD Faces Key Support at 1.0810; Resistance at 1.0840

In the EUR/USD pair, the first support level is at the 200-day moving average, which is 1.0810. If this level is breached, the next supports to watch will be 1.0780 and 1.0710. On the upside, the first resistance is at 1.0840; if this level is surpassed, the next targets will be 1.0870 and 1.0900.

USD/JPY Gains Ahead of BoJ Decision; Resistance at 154.70

Ahead of the Bank of Japan's interest rate decision, the USD/JPY pair has started the week with an upward trend, in contrast to last week. The first resistance level is at 154.70. If this level is surpassed, the next targets will be 155.50 and 156.00. On the downside, the initial support is at 153.40; if this level is breached, the next supports to watch will be 152.00 and 151.15.

Gold Remains Steady; Initial Support at 2,370, Resistance at 2,400

Before the important data releases, gold remains in a sideways trend, with the first support level at 2,370. If this level is breached, the next supports to watch will be 2,355 and 2,316. On the upside, the initial resistance is at 2,400; if this level is surpassed, the next targets will be 2,415 and 2,430.

GBP/USD Eyes Resistance at 1.2890, Next Targets 1.2910 and 1.2950

For GBP/USD, the initial support lies at 1.2820, followed by 1.2760 and 1.2730 below. On the upside, the first resistance is at 1.2890, with subsequent levels at 1.2910 and 1.2950 if the pair breaks above this resistance.