EUR/USD is under pressure amid the rising geopolitical fears and upcoming US elections. If Donald Trump enters the White House again, then new tariff wars may begin. Moreover, the situation in the Middle East makes investors and traders turn to the risk-off mode and look for safer assets.

A set of PMIs in the Eurozone will be released this week. According to forecasts, most of them are better than previous readings, which may support EUR. However, USD is also supported by the latest economic data releases, which give the Fed some more space when it comes to monetary policy decisions.

From the technical point of view, EUR/USD fluctuates below the SMA 50, which means that the currency pair is now in a downtrend. Any test of the SMA 50 can be considered by traders as a signal to open short positions or buy Lower contracts. The RSI indicator is neutral as its line is between 30 and 70. Currently, EUR/USD may have a correction towards the SMA 50. The closest support level is at 1.0813. Resistance coincides with the simple moving average. 

GBP/USD Plunges As New Rate Cuts Are Expected by the Market

The inflation in the UK dropped below 2%, which is a target level for the Bank of England. This may stimulate the Bank of England to continue its expansionary policy as the situation in the economy requires additional measures. However, this week GBP may find some support from the PMI data that will be released on Thursday. According to forecasts, there will be a slight dynamics in PMIs in the UK, but they are likely to stay above 50, which means that both manufacturing and services sectors are growing.

On the technical side, GBP/USD stays below the SMA 50, which means that the currency pair is in a downtrend now. It has tested the simple moving average recently and moved below to test the current low at 1.2970. GBP/USD is likely to move to the SMA 50 again to retest the moving average. 

The closest support level is at 1.2970, which prevents the price from moving lower to 1.2941. The resistance is at 1.3009. By crossing this level, GBP/USD is likely to target 1.3052, which is the next resistance level for the currency pair.

USD/CAD Is Under Pressure Ahead of the Upcoming BoC Meeting

The Bank of Canada is expected to cut rates by 50 bps from 4.25% to 3.75%. Moreover, the current inflation and other macroeconomic data from this country suggest that this is not the last one this year. Apart from the BoC meeting, it is worth looking at retail sales data that is likely to be released on Friday. According to prelim forecasts, retail sales are likely to drop from 0.9% in August to 0.5% in September.

From the technical point of view, the Canadian dollar is under pressure as USD/CAD is above the SMA 50. The RSI indicator is neutral as its line is below 70. The closest support level is at 1.3830 from where the currency pair may target a local high at 1.3850. According to the market sentiment, USD/CAD is likely to continue its upside movement when the correction ends.

On the downside, if USD/CAd manages to break below the SMA 50, the closest support level will be at. 1.3810.

Gold Targets its New All-Time Highs

Gold is supported by several factors. First, the upcoming US presidential campaign makes traders and investors sell risky assets and search for low-risk investments. Gold is a good choice in such times.

Second, tensions in the Middle East do not favor buying assets with high risks. Even though the conflict is still in its cold phase, a full-fledged war in the region may have a significant impact on the global economic and geopolitical environment.

Third, most major economies, including China, suffer from slow growth, which means that they will have to make expansionary steps as well. All these factors stimulate traders and investors to run into gold.

From the technical point, XAU/USD stays above the SMA 50, which is a signal that the pair is trending. The RSI indicator is neutral after being oversold for a while. The closest resistance level here is at 2,740. After breaking it, XAU/USD is likely to target 2,800, which is a round psychological number. 

The closest support level is at 2,714. If XAU/USD manages to break it, the next support will be at 2,690. However, it is unlikely that Gold will move to these levels as fundamentals support a further uptrend.