EURUSD
The Euro saw slight gains during the Asian trading session on Thursday, after yesterday’s drop, as stalling commences for the currency ahead of EuroZone Inflation Data this week.
The USD attempted rallying yesterday but failed after negative Retail Sales Data and US Producer Prices figures came in weak. European Central Bank President Mario Draghi commented yesterday, that the stimulus program will continue until inflation targets are reached. This comment also helped to weaken the Euro yesterday.
Technical reading for the EURUSD pair shows that prices are trying to consolidate after the recent strong rally. A single break of support at 1.2370 would allow prices to retreat further and may test 1.2350 levels. On the other hand, a breach of near resistance levels at 1.2410 would introduce an uptrend possibly testing 1.2445 levels
USDJPY
The US Dollar continues its slide against the Yen Thursday, for the fifth session in a row, in a monthly decline risk to investors looking for safe haven as geo-political tensions continue in the markets.
The decline in Global Equity Indices due to fears of a trade war between China and the United States, and tension between Britain and Russia, has also caused investors to lower their risk appetite. This has positively reflected on the Japanese Yen as a safe haven asset.
The return of selling pressures on the USDJPY pair’s movement will reinforce the previous bearish trend. A break below the support levels near 105.80 will consolidate the declines and possibly test the levels of 105.60 A price reversal however, above the resistance level at 106.00 would temporarily ease selling pressure.
XAUUSD/GOLD
Gold prices rose slightly during the Asian trading session on Thursday, despite rising tensions in the financial markets, increasing demand for safe haven and alternative investments.
US Data released yesterday on Retail Sales and Producer Prices increased expectations of Inflation instability, which could affect the Federal Reserve’s rate hike, thereby causing support for Gold in the markets.
The stock market on the other hand, is witnessing a decline which in turn, increases the demand for Gold as a safe haven asset, especially as the markets are in a state of caution regarding US Administration Tariffs.
Despite recent price hikes, price of the yellow metal still has to break above 1330 resistance levels to confirm a continued rally. A drop below the near support at 1325 would affect the recent uptrend and introduce a sideways trend.
CRUDE OIL
Crude oil prices will trade today at $61 a barrel on expectations of rising global demand, but rising US production levels and rising inventories still limit the chances of price gains.
Technical reading shows that prices are trying to absorb recent selling pressures. With no clear signs of a reversal on the overall bearish trend, if prices manage to break through resistance levels at 61.60, the market may correct higher, and possibly test a second resistance level at 62.00. A break of support at 60.70 would however introduce a downtrend.
