Dollar drops as European trading starts.

EUR/USD has moved to a high of 1.1894, reaching a 200-hour moving average at 1.1893 as we can see the dollar gives up some ground to start European trading.

GBP/USD is nearing 1.3900 while AUD/USD has moved up to close in on a test of the 0.7600 level.

Also, USD/CAD is pushed down 0.3% to near 1.2300 while NZD/USD has broken to new highs in nearly three weeks just above the 0.7100 level.

Evidently, it seems like we are settling back into the push and pull mode in the dollar ahead of the Fed which will provide more clarity tomorrow.

AUD/USD Daily Chart

The US Dollar Falls, Gold Prices at $1,800.

Gold prices attempt to hot the $1,800 mark since Tuesdays APAC session, This would be a fifth consecutive win for the Gold.

IT should be a successful attempt to intensify a near-term buying pressure to make way for a higher-pressure level.

Ultimately the next resistance levels would be found at around $1,809 this would be the 50% mark of Fibonacci retracement level.

Even so the gold prices are pushing to break its hights of range-bound zone at $1,750 -$1,795 as you can see it highlighted in the chart.

A potential attempt could open the doors to an upside at $1,800 and then to $1,809.

The MACD indicator formed a bullish crossover, suggesting that near-term selling pressure may be depleting.

Gold – Daily Chart

AUD/NZD continues a 5-week low streak as RBA give the green light,

Central bank divergence and the RBNZ rate hike and RBA policy make today the difference between the two pairs.

This alone can take the AUD/NZD down back to lowest as it did in May at a near 1.0600.

The pair is already breaking to fresh five-week lows now below the 61.8 retracement level of its recent upside move last month @ 1.0681.

This puts pressure on trendline support level at 1.0641 before May 27th low at 1.0600 which comes back into play.

With market expectations for a RBNZ rate hike rising and the RBA not expected to budge until November at the earliest, there is little chance for the NZD to support against the AUD for now.

The big question is, how will the RBNZ will respond to the discussed potential raising rates in November 2021.

If they push back against that, it will stir any major downside momentum in AUD/NZD that comes from this supposed policy divergence the market is building up right now.

AUD/NZD Daily Chart

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