The Euro is witnessing weak movements during Asian trading on Tuesday as it was affected by the Dollar’s attempts to recover after the US Congress reached an interim agreement to end the Government Shutdown.
Technically, a rebound in the pair should reinforce the previous bullishness. The pair’s success in breaching near resistance levels at 1.2260 will boost optimism and push the price test to 1.2290.
However, a return below 1.2245 support levels would temporarily ease the bias.
The British Pound fluctuated during the Asian session in a sloping range, after reaching 1.4 levels per USD yesterday on the back of remarks by British Prime Minister Theresa May’s spokesman that the UK would leave the European Customs Union.
In the near term we are still waiting for a definite breach with 1.4000 pivotal resistance to confirm a return to the main upside direction and then achieve positive targets starting at 1.4020. Nevertheless, a break of the support level at 1.3950 will push the price back to the downside correction track possibly hitting the 1.3925 support level.
The US Dollar continues to trade near three-year lows against its major counterparts after a slight recovery on Wednesday, following optimism that the US Congress agrees to allow the Government to be temporarily funded for more than two weeks.
The Japanese Central Bank today, decided to leave interest rates and stimulus program unchanged, ending expectations that the bank may start pulling stimulus this year. The return of selling pressures on the USDJPY pair’s move would reinforce the previous bearish trend. A break below the near support levels at 110.75 will consolidate the declines and cause a test at 110.45 levels alone. The return of the price above the resistance level at 111.00 would temporarily ease selling pressure.
The return of the selling pressures on the pair’s movement will reinforce the previous bearish trend. A break below the support levels at 0.9610 will consolidate the declines and open the door to test the levels of 0.9590 alone. The return of the price above the resistance level at 0.9640 would temporarily ease selling pressure.
Gold prices rose slightly during the Asian trading session, slightly higher than yesterday’s levels, as demand for Gold stabilized as a safe haven amidst current market tensions.
The US dollar recovered today against a basket of major currencies after it found support from the US Government’s suspension of the Government Shutdown, with markets awaiting US growth data for the fourth quarter this week.
Despite the recent declines in prices, the precious metal still has to break below stability levels at 1330 to confirm the continued decline. Hitting the 1333 resistance level would affect the recent bearish trend and cause the market to proceed on a sideways movement.