The Euro recorded a limited rally during the Asian Session on Thursday, after two straight sessions of decline against the Dollar. The recovery comes as the Dollar stopped rising against major currencies giving room for the Euro to recover.
Recent comments by members of the European Central Bank showed some confusion over the future of the stimulus package, which some believe should be gradually withdrawn, while others support it until September. This confusion has caused a negative pressure on the EUR, especially in the absence of catalyzing Economic Data from the EuroZone this week.
Despite the pair’s recent declines, prices still have to break and hold below support levels at 1.2300 and 1.2280 to confirm a continued decline. Breaking the resistance levels close at 1.2340 would affect the recent bearish trend and enter the pair in a sideways movement
The British Pound strengthened against other major currencies during the Asian Session after falling yesterday from its highest since February 2, following economic developments and data released yesterday.
The UK Manufacturing Association’s revised Sales Index, which showed a contraction of 8 versus 8 bp in February, in contrast to expectations of a 7-fold contraction following Brexit developments.
Technical reading of the GBPUSD pair still shows that prices are moving within the framework of a negative correction toward a general upside. The support levels at 1.4065 and 1.4030 are still considered the most important levels on the short term and the strength of the pair above these levels would restore the uptrend. However, any indication of change of trend over the short term will positively affect the movement of prices.
The US Dollar weakened against the Yen in Asian trading on Thursday, following the gains in recent transactions caused by the better than expected US Growth Data for Q4.
Despite recent gains, the pair still has to break above the resistance levels of 106.60 and 107.00 to confirm a continued uptrend. A drop below the support at 106.20 would affect the recent uptrend and introduce a sideways trend.
The Australian Dollar continued to weaken for the third session in a row for the third consecutive session, hitting a 14-week low against the US Dollar, as selling pressure on the Australian currency intensified following global trade relations strained.
The return of selling pressures on the pair’s movement would reinforce the previous bearish trend. A break below the support levels near 0.7640 would consolidate the pair and cause a test at 0.7620 levels. A price reversal above the resistance level at 0.7680 would temporarily ease selling pressure.
Gold prices rose Thursday, after hitting a one-week low following two sessions of losses. This recovery comes after the Dollar’s expectations of a rise against the major currencies.
The Dollar rose significantly during yesterday’s trading, supported by the US Q4 Growth Data in the, which came in better than expected, causing more negative pressure on the prices of the yellow metal.
The return of selling pressures on Gold’s price would reinforce the previous bearish trend. A break below the 1325 support levels will consolidate the yellow metal and possibly test the 1315 levels. A price reversal above the resistance level at 1330 would temporarily ease selling pressure.