The Euro fell for a third straight session on Thursday as the Dollar rose against the major currencies after the Federal Reserve’s meeting minutes and the lackluster economic data from the EuroZone.
Yesterday, the EuroZone saw a decline in Industrial and Service sector performance data in February, raising concerns about a drop in growth in the first quarter of this year.
As a result, the negative pressure on the Euro levels has increased to the lowest level this week and during the Asian session today as markets await the release of the Minutes of the European Central Bank meeting.
Technically, despite recent declines in the EURUSD pair, prices still have to break and hold below support levels at 1.2260 and 1.2200 to confirm a continued downtrend. Breaking the resistance levels close at 1.2285 would affect the recent bearish trend and introduce a sideways trend.
The Australian Dollar completed its week low against the US Dollar this week to the lowest level this week as the Dollar recovered and recorded its highest level in a week after the Federal Reserve meeting minutes.
Technically, the return of selling pressures on the pair’s movement would reinforce the previous bearish trend. A break below the support levels near 0.7785 will consolidate the declines and likely cause a test at the levels of 0.7770. The return of the price above the resistance level at 0.7810 would temporarily ease selling pressure.
Although the US Dollar rose to a one-week high against a basket of major currencies after the Federal Reserve’s meeting minutes, the Yen rebounded in today’s session, as Investors reacted to higher yields on Government Bonds, buying the Japanese Yen as a safe haven under current changes in financial markets.
Technically, USDJPY still needs to break above the resistance levels at 107.40 and 107.90 to confirm the continuation of the uptrend. A drop below the near support at 107.15 would affect the recent uptrend and introduce a sideways trend.
Gold prices were weak during the Asian Session on Thursday to maintain losses recorded since the beginning of the week, after the meeting minutes of the Federal Reserve, which caused a further rise of the US Dollar.
The Fed pointed to growing confidence in the outlook for US Economic Growth and continued risk to Inflation, encouraging continued expansionary Monetary Policy and gradual Rate Hikes.
This caused the USD to rally to a one-week high versus the majors, adding to negative pressure on Gold and commodity prices in general as they are priced in dollars.
The return of the selling pressure once again on the price action would consolidate the previous bearish trend. A break below the support levels near 1323 will consolidate the declines and cause a test at 1317 levels. A price reversal above the resistance level at 1326 would temporarily ease selling pressure.