The Euro edged higher during the Asian trading session on Tuesday after advancing yesterday despite the absence of Economic Data from the EuroZone and the decline in the Dollar.
Despite recent gains, the pair still has to break above 1.2300 and 1.2340 resistance to confirm a continued rally. A drop below the close support at 1.2280 would affect the recent uptrend and introduce a sideways trend.
The Australian Dollar rose slightly on Tuesday after posting gains for two straight sessions, following strong numbers from the Australian NAB Business Confidence Data.
Technical reading continues to show that prices are still moving within the framework of a positive correction toward a general bearish trend. Resistance levels at 0.7890 are still considered the most important levels on the short term, and these levels will further consolidate the downtrend. Any indication of change in the direction on the short term however, would negatively affect the movement of prices
A downward price reversal on the USDJPY pair’s movement will reinforce the previous bearish trend. A break below the near support levels at 108.25 will consolidate the declines and likely cause a test to the 108.00 levels. The return of the price above the resistance level at 108.40 would temporarily ease selling pressure.
The lack of clarity on the price movement for the GBPUSD pair indicates that Investors eagerly await the CPI Data later today. There is clearly the absence of any strong signals of a possible price penetration in any of the trends.
A break above the top of the close price at 1.3940 or the break of the near-term price at 1.3760 would give more clarity to the expected movement which would be in the same direction as the break.
Gold prices edged higher during Tuesday’s trading, following gains made by the precious metal yesterday, as the Dollar declined. The US Dollar continues its weak and bullish movements, which has helped commodities and major currencies to gain strength since the beginning of the week to offset losses against the Dollar in the past week.
Despite recent price hikes, it still has to break above the resistance levels at 1326 and 1332 to confirm the continued rally. A drop below the near support at 1320 would affect the uptrend and introduce a sideways movement.