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Gold, XAU/USD, has been moving sideways for weeks in a row. Price is unable to break above the resistance at $1350-60 nor below the support at $1300. The current wave patterns favor a bearish break in my view because I am expecting an expanded WXY (pink) correction within wave 2 (light purple). A bullish break above the resistance could invalidate this wave analysis.

Price could be building a bearish 5 wave (green) if Gold manages to break below the support zone (blue). A bullish bounce could indicate a complex correction.

Daily Pivots: (S1) 0.8728; (P) 0.8747; (R1) 0.8767; More...

As noted before, EUR/GBP's rebound could have completed with three waves up to 0.8844. Deeper fall is in favor to 0.8679 support first. Break will affirm the bearish case that decline form 0.9305 is still in progress and target 0.8620 and below. On the upside, break of 0.8844 is now needed to revive the bullish case of reversal. Otherwise, outlook is now bearish even in case of recovery.

In the bigger picture, for now, the decline from 0.9305 is seen as a leg inside the long term consolidation pattern from 0.9304 (2016 high). Such consolidation pattern could extend further. Hence, in case of strong rally, we'd be cautious on strong resistance by 0.9304/5 to limit upside. Meanwhile, in another decline attempt, we'd expect strong support from 0.8116 cluster support (50% retracement of 0.6935 to 0.9304 at 0.8120) to contain downside.

The GBP/USD broke above the resistance of the downtrend channel (dotted red) and could be preparing for a larger bullish correction. The reversal would become more likely if price is able to break above the previous tops (orange) which could indicate the completion of the wave 1 (pink) and the start of the wave 2 (pink).A bearish breakout however could indicate a continuation towards the Fibonacci targets of wave 5 (purple).

The GBP/USD is still respecting the38.2% Fibonacci level of wave 4 (green), which means that this wave pattern could still be ongoing. Price will need to break above the resistance (red) or support (green) trend lines before the next direction is known. Downtrend is still valid but price is showing a significant pause which increases the chance of a reversal. It mostly depends on the breakout direction.

XAUUSD (1313.96): Gold prices have turned flat in the short term with price action repeatedly testing the support level between 1311 and 1307 region. However, with this support level holding out for the moment, we expect the upside momentum to push gold prices slightly higher. The next main resistance level at 1325 remains a key level that could be tested for resistance.

GBPUSD (1.3564): The British pound continues to consolidate near the support level but we expect to see a bottom in the prices being formed. To the upside, the major trend line is likely to act as dynamic resistance with the potential for price action to correct toward 1.3900 level eventually. The declines are likely to be limited in the near term. However, a decline below 1.3530 level of support could potentially keep GBPUSD biased to the downside. Further declines can be expected on a break down below 1.3500 level.

EURUSD (1.1863): The EURUSD currency pair closed with a spinning bottom pattern yesterday just after closing below the main support level of 1.1960 - 1.1920. The spinning bottom pattern signals a potential turning point in prices in case we see a bullish close on the day. However, with price below the support level, a convincing close above this level is required in order for price action to post a corrective move. To the upside, the EURUSD could be seen rising to the next main resistance level of 1.2200 level. To the downside, further declines could push the common currency down to 1.1730 where the next support resides.

Daily Pivots: (S1) 1.5854; (P) 1.5908; (R1) 1.5940; More....

EUR/AUD dips notably after failing to break through 1.5966 minor resistance. But it's staying above 1.5837 support and intraday bias remains neutral. Price actions from 1.6189 are forming a corrective pattern. Below 1.5837 will extend the leg from 1.6139 and target 1.5773 support and below. But we'd expect strong support above 1.5621 to complete the pattern and bring rebound. On the upside, above 1.5966 support turned resistance will turn bias to the upside for 1.6139 resistance.

In the bigger picture, while there is bearish divergence condition in daily MACD, there is no clear sign of reversal yet. Current rally from 1.3624 could extend to 1.6587 key resistance (2015 high). Nonetheless, we'd expect further loss of upside momentum, and strong resistance from 1.6587 to limit upside and bring reversal. On the downside, sustained break of 1.5621 support should confirm reversal and turn outlook bearish for 1.5153 support and below.

The U.S. dollar was seen maintaining the gains from the earlier part of the week. Investors digested news of the U.S. pulling out of the Iran nuclear deal with oil prices continuing to rise to fresh highs.

On the economic front, the RBNZ was seen holding interest rates steady at 1.75%. The central bank did not waver from its previous forward guidance and maintained that rates will remain supportive in the near term.

Looking ahead, the economic calendar for the day will be dominated by the Bank of England monetary policy meeting. The central bank is expected to hold the interest rates steady at this week's meeting but there is potential to announce a next rate hike by August.

The manufacturing and industrial production figures from the UK will also be released today with forecasts pointing to a 0.2% decline in manufacturing production. The U.S. economic data will see the monthly inflation figures coming out. The median estimates show that consumer prices might have increased 0.3% on the month in April while core inflation rate is expected to rise 0.2%.

Daily Pivots: (S1) 1.1880; (P) 1.1901; (R1) 1.1936; More...

EUR/CHF recovered after dipping to 1.1864 and intraday bias is turned neutral first. Further fall is expected as long as 1.1932 minor resistance holds. A short term top was formed at 1.2004 after failing to sustain above 1.2 handle. Below 1.1864 will target 38.2% retracement of 1.1445 to 1.2004 at 1.1790. Though, we'd expect strong support from there to bring rebound. On the upside, above 1.1932 will turn focus back to 1.2004 high.

In the bigger picture, long term up trend in EUR/CHF is still in progress. Prior SNB imposed floor at 1.2000 was already met but there is no sign of reversal yet. As long as 1.1445 support holds, we'd expect the up trend to extend to 2013 high at 1.2649 next. However, considering bearish divergence condition in daily MACD. Break of 1.1445 will be an indication of medium term reversal and will turn outlook bearish.

The euro remains under selling pressure against the U.S dollar, after short-term buyers failed to move price back above the key 1.1900 level. Yesterday, the EURUSD pair traded as high-as 1.1896, after U.S PPI Inflation data came in slightly weaker than expected, although the rally higher was soon sold lower. Traders are likely to focus on a break of the current 1.1822 to 1.1896 trading-range, and the release U.S CPI Inflation data later today.

The EURUSD pair remains bearish while trading below the 1.1900 level, key intraday support is found at the 1.1822 and 1.1800 levels.

If the EURUSD pair starts to trade above the key 1.1900 level, buyers may test the 1.1913 and 1.1938 resistance levels.