The bullion bounced off the rising wedge pattern’s lower trend line and surged on Thursday morning. On early morning, the metal was about to face a resistance cluster from 1,326 to 1,331, which is comprised of both the weekly and monthly pivot points and the 20 and 55-day simple moving averages. Previously, it was possible that the yellow metal will break out from the rising wedge pattern due to the pressure provided by a triangle pattern, and the threat still remains, as the triangle remains active.

The yellow metal continued to try and break the resistance put up by the weekly pivot point at 1,316.02 on Wednesday morning. Although, the metal had reached far above the resistance and touched the 1,320 mark, it retreated afterwards, as the 20-day SMA is approaching at 1,322.16, and it is set to provide additional resistance against the bullion’s surge. Daily aggregate technical indicators forecast a fall of the metal by the end of the day’s trading session, and the closest support level is at 1,305.52. Both of these factors indicate, that the rising wedge pattern of the metal might be soon broken.

Despite a lack of events in the economic calendar the US Dollar managed to strengthen, and now there is a good chance of the pair settling above 102.70, where the weekly PP coincides with the 55-day SMA. If this is the case, the next resistance to try and stop the advancement will be 103.50, represented by the trendline that originated at the very beginning of the year. Additional resistance is at 104.80 (100-day SMA and monthly R1), but a breach of 103.50 is likely to be followed by a recovery to July highs at 107 yen.

Although yesterday in the morning the upside seemed limited, the price managed to mount 102 yen, thus closing above the monthly PP and alleviating some downward pressure. Nevertheless, the 55-day SMA stays intact, suggesting the near-term outlook remains negative and 100.80/70 is still a viable target. This support mainly consists of the 50% retracement of the 2012-2015 rally and monthly S1. Additional strong demand is seen at 100 yen, and for the time being this we consider to be the floor.

The common European currency is between two strong clusters against the US Dollar on Monday, as the currency exchange rate previously on Friday retreated from the 1.12 level by the end of day’s trading session. However, the resistance from the upside is stronger, as the support cluster, and the daily aggregate technical indicators forecast a fall for the currency exchange rate during today’s trading session. Due to that, it is most likely that the Euro will depreciate against the Greenback by the end of Monday’s trading.

Japanese household spending continued to decline in July as the strongest labor market in at least two decades failed to boost wage growth significantly. Household spending fell 0.5% year-on-year in July, according to Japan’s Statistics Bureau, the fifth-consecutive decline and the 21st month out of the last 24 that spending has fallen. Analysts had expected spending to fall 1.3% in July.

The yellow metal stopped the fluctuations around the 1,340 level, in which it had been in for the past weeks, as the metal fell on Wednesday due to being pressured by the 20-day SMA from the downside. In the fall the bullion almost reached the weekly S2 at 1,322.63 and ended the session at 1,326.32. On Thursday morning gold has rebounded against the weekly support level and slightly surged, as it has encountered the 55-day SMA at 1,327.31. As the metal is pressured between the two levels, it is most likely going to remain unchanged during today’s trading session.

The Kiwi surged mid-Tuesday against the US Dollar, as the currency exchanged rate traded at 0.7295 by 11:15 GMT, compared the opening rate of 0.7212. The rate is most likely to continue to surge at least 40 pips in the near future, as it faces only the upper Bollinger band at 0.7312 until it would reach the 0.7337 level, where the weekly R1 is located at. In addition, the surge was and still is supported by the daily and weekly aggregate technical indicators. Moreover, the pair is still in an ascending channel pattern, as it rebounded against the lower trend line on July 25 at 0.6997.