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The DAX index has ticked upwards in the Monday session. Currently, the DAX is at 12,455, up 0.11% on the day. On the release front, Germany’s trade surplus widened to EUR 20.3 billion, matching the estimate. Eurozone Sentix Investor Confidence dropped to 12.1, but this beat the forecast of 9.0 points. ECB President Mario Draghi is testifying at the European Parliament Economic and Monetary Affairs Committee. On Tuesday, Germany and Eurozone ZEW Economic Sentiment are expected to post sharp declines.

German industrial numbers looked sharp last week. On Thursday, Factory Orders jumped 2.6%, marking a five-month high. This was followed by Industrial Production on Friday, which climbed 2.6%, its sharpest gain in 2018. There is growing concern that protectionist moves by both the U.S and the EU could take a toll on exports and the manufacturing sectors, so these strong readings are welcome news. Meanwhile, trade tensions between China and the U.S remain high as U.S tariffs on $34 billion in Chinese products took effect on Friday and China has vowed to retaliate against U.S imports. European officials are anxiously watching these developments, as Trump has threatened to impose tariffs of 20 percent on European auto imports if the EU does not remove their tariffs on U.S automobiles. The EU would clearly prefer not to engage in a full-blown tariff war with the United States and on Thursday, there was a report that European officials are examining the possibility of a tariff-cutting agreement between the world’s largest car exporters. Such a deal would be a major accomplishment and would likely boost European stock markets.

U.S employment data was a mix on Friday, as job growth remained above the 200-thousand level, but wage growth faltered. Nonfarm payrolls dropped to 213 thousand, but this beat the estimate of 195 thousand. Average Hourly Earnings edged lower to 0.2%, shy of the estimate of 0.3%. There was a surprise as the unemployment rate climbed to 4.0%, above the forecast of 3.8%. The data demonstrates that the U.S labor market remains strong, and the economy continues to perform well. The markets remain bullish on U.S growth, despite uncertainty in Europe and elsewhere, as well as the growing threat of an all-out trade war between the U.S and China.

The US dollar remains trapped in a well-established trading range against the Japanese yen, as traders seek a breakout from the 110.25 to 110.80 levels. Despite a strong decline in the value of the US dollar index the USDJPY pair is neutral and has failed to follow the greenback lower. Bulls seek a break above the 110.80 level, while sellers will look to hold price below the 110.25 support level.

The USDJPY pair is only bullish while trading above the 110.80 level, further upside towards the 111.00 and 111.40 levels seems possible.

If the USDJPY pair moves below the 110.25 level, sellers will likely test towards the 110.00 and 109.54 support levels.

The euro currency has soared to a fresh monthly trading-high against the US dollar, hitting 1.1782, during the European trading session. The EURUSD pair has been a beneficiary of intraday weakness in the greenback, with the US dollar index slipping below the 94.00 level. Buyers will now look to break above the 1.1800 level, while sellers will target the 1.1724 support level.

The EURUSD pair is further bullish while trading above the 1.1800 level, key resistance remains at the 1.1800 and 1.1851 levels.

If the EURUSD pair falls below the 1.1724 level, key technical support is found at the 1.1713 and 1.1685 levels.

Gold's rebound from 1238.00 continues today and hits as high as 1265.40 so far. With a short term bottomed formed ahead of 1236.66 key support could be seen. Gold should now target 38.2% retracement of 1365.24 to 1238.00 at 1286.60. That would still be reasonably close to 55 day EMA (now at 1286.23) when they meet. For now we're only seeing the rebound from 1238.00 as a corrective pattern. Hence, we'd expect strong resistance from 1286.60 to limit upside. The fall from 1365.24 is expected to resume later through 1238.00, when Dollar regains strength.

EUR/USD has posted gains in the Monday session. Currently, the pair is trading at 1.1774, up 0.23% on the day. On the release front, Germany’s trade surplus widened to EUR 20.3 billion, matching the estimate. Eurozone Sentix Investor Confidence dropped to 12.1, but this beat the forecast of 9.0 points. ECB President Mario Draghi is testifying at the European Parliament Economic and Monetary Affairs Committee. On Tuesday, Germany and Eurozone ZEW Economic Sentiment are expected to post declines. The U.S will release JOLTS Jobs Openings.

U.S employment data was a mix on Friday, as job growth remained above the 200-thousand level, but wage growth faltered. Nonfarm payrolls dropped to 213 thousand, but this beat the estimate of 195 thousand. Average Hourly Earnings edged lower to 0.2%, shy of the estimate of 0.3%. There was a surprise as the unemployment rate climbed to 4.0%, above the forecast of 3.8%. The data demonstrates that the U.S labor market remains strong, and the economy continues to perform well. The markets remain bullish on U.S growth, despite uncertainty in Europe and elsewhere, as well as the growing threat of an all-out trade war between the U.S and China.

EUR/USD showed little response to the FOMC minutes, which were released on Thursday. The minutes were somewhat dovish in tone, as policymakers gave a thumbs-up to the strong U.S economy, but expressed concern about developments abroad. These include growing trade tensions with U.S trading partners, as well as political and economic developments in Europe. The minutes also reiterated the Fed’s support for a “gradual” raise in interest rates. The markets are circling the September policy meeting for the next rate hike, with the CME Group setting the odds of a quarter-point hike at 80%.

GBP-USD- Trading above its important moving aveages
​EUR/USD- trading above its upward trend line

GBP-USD- Trading above its important moving aveages

The GBP-USD pair has broken its downward trend line and crossed above the 100 and 200-day moving averages on a 4-hour time frame. This confirms that the momentum is bullish and we have a bull signal. The bias will remain for more upside move as long as the price stays above both averages. The balance of power also confirms that bulls hold most of the control

EUR/USD- trading above its upward trend line

The sideway move is still controlling the price when it comes to the EURO-USD pair. Yes, there is no doubt that the bulls have momentum as it is confirmed by important factors: price crossing the 100 and 200-day moving averages and it is trading above its moving averages

The common European currency for the third consecutive trading session continued to gain new heights against the US Dollar.

Namely, on Monday morning the currency pair had surged above the resistance of the 23.60% Fibonacci retracement level, which was located at the 1.1757 mark. Due to that reason the pair faces no resistance up to the 1.1812 level, where the weekly R1 is located at.

Meanwhile, note that a junior ascending pattern was charted on Monday morning, which has guided the currency pair for almost a week.

The surge of the Pound has extended on Monday against the US Dollar, as the currency pair had reached above the 1.3350 mark during the first part of the day's trading.

During the move the pair broke the resistance of a dominant descending pattern, which managed to delay the appreciation of the Sterling against the Dollar on Friday.

However, the surge was stopped by and was still set to face the combined resistance of the weekly R1 and the upper trend line of medium term ascending pattern near the 1.3350 mark.

On Monday the USD/JPY currency pair traded near the 110.50 mark. At that level it was being kept by the resistance of the 200-hour simple moving average. In addition, the 200-hour SMA was about to be strengthened by the 55 and 100-hour SMAs, which were located just above.

However, more notable was the fact that the rate had fallen below the support of a long term ascending pattern. The event took place suddenly, as the 55-hour SMA failed to provide support.

In regards to the future, the rate is likely going to be beaten down by the SMAs to the 110.20 level, where the 61.80% Fibonacci retracement level is located at.

The yellow metal on Monday morning booked new high level near the 1,260.00 mark. Moreover, during the surge the pair broke the resistance of a medium term descending channel pattern.

The metal is set to continue to gain, as the bullion faces no resistance up to the 1,261.00 level. At that level the commodity price is set to meet with the resistance line of the dominant ascending long term channel.

However, for that to occur, the bullion will need additional support, which could be provided by the various simple moving averages.