The Euro edged lower during the Asian Session on Tuesday as the US Dollar recovered against a basket of major currencies ahead of the Fed Meeting. The markets are also attempting a correction following Euro’s 3 year high last week.
Technical reading shows the pair’s move within the negative correction toward the general upside trend. The support levels at 1.2360 and 1.2330 are still considered the most important short-term levels, and the pair’s strength above these levels would restore buyers’ confidence and move prices toward a bullish trend. Any indication however, of a change in direction on the short-term, will definitely have a positive effect on price movement.
Oscillation dominated the AUD today to witness a slight decline as the US Dollar recovered and the Reserve Bank of Australia held its first meeting this year, which saw a tightening in the Bank’s Monetary Policy.
The Bank set a steady course of Interest Rates at its meeting and noted that the Wage Increase is necessary to ensure the badly needed recovery in Inflation. Monetary Policy makers have also become more confident about the outlook for the economy, thanks in part to the pace of global economic recovery.
Technical reading continues to show that prices are still moving within a negative correction to the general upside. Support levels at 0.7910 and 0.7890 remain the most important short-term levels and the pair’s strength above these levels will introduce an upward trend in price movement. At the same time, any change on signal trend over the short term, will positively affect the movement of prices.
The US Dollar has been recovering since the end of last week after hitting a three-year low following a market correction and ahead of the Federal Reserve’s Meeting Minutes due to be released on Wednesday. Asian Stocks also fell today as the Asian Session progressed today.
Technical reading shows that the pair is trying to absorb the recent selling pressure that the pair is exposed to. With no clear signals to change on the overall bearish trend, if the pair manages to breach the 106.85 resistance levels, it would allow the market to correct higher and possibly test the second resistance level at 107.40. A break of the support level at 106.40 would cause prices to proceed on a downward trend.
Gold prices fell on Tuesday as the US Dollar recovered from a three-year low, and as markets await the Federal Reserve’s Meeting Minutes. The decline in Gold levels occurs despite the decline in Asian Stock Indices, which usually would support the rise of Gold as a safe haven and alternative investment.
Technical reading continues to show that prices are moving within a negative correction to the general upside trend. The support levels at 1340 and 1334 remain the most important short-term levels, and the pair’s strength above these levels will restore the confidence of the buyers, introducing an upward trend. At the same time, the price movement will be positively affected.