The Euro saw weak movements during the Asian session on Tuesday, after a slight advance in yesterday’s trading, following weak trading volume caused by the absence of Economic Data from the EuroZone.
Focus on the currency markets remains on the Inflation Data expected to be released from the US Economy later today.
Daily technical observation shows the formation of a technical pattern; head and shoulders model, a reflective pattern which may be confirmed by a break at the neckline. On the medium term, we notice a kind of fog and neutrality which clearly affects the trading of the EURUSD pair, with no strong signs of a possible price break in any of the trends.
A break above the price at 1.2345 or near the price bottom at 1.2300 would give more clarity to the expected movement which would be in the same direction of the break.
The Japanese Yen managed to maintain yesterday’s gains versus the US Dollar, as the current Asian Stock Markets are losing ground and the Japanese Yen has gained more interest as a safe haven.
JPY’s recovery comes as Japanese and Asian Stock Indexes take a nosedive, keeping the Yen on its gains.
Technical reading however, still shows that prices are moving within a positive correction toward an overall bearish trend. Resistance levels at 106.75 and 107.00 remain the most important short-term levels and these levels are likely to keep the market on a downtrend. A short-term trend reversal on the other hand, will negatively affect price action.
The Australian Dollar continued to rise for a third session in a row, hitting a one-week high against the US Dollar, following the release of the Business Confidence Index, which came in lower than expected.
While further buying will strengthen the bullishness, the pair’s success in breaching near resistance levels at 0.7880 will boost optimism and push the price test to 0.7900. A reversal on prices below the 0.7860 resistance level would however, temporarily ease the bias.
Gold prices continued to fluctuate during the Asian Session today, and for the fourth session in a row. This comes within the context of the interaction of factors affecting Gold, including the CPI Data due for release later today.
The return of selling pressures on price action would reinforce the bearish trend and a break below the support levels at 1317 will consolidate the declines and possibly test 1313. A price reversal above the resistance level at 1320 would temporarily ease selling pressure.
Crude Oil prices fell for the second straight session, Tuesday, as market concerns continue to push up US production.
However, despite the recent declines in oil prices, technical reading indicates that prices still have to break and stabilize below the support levels at 61.10 and 60.50 in order to confirm a continued decline. The breach of resistance levels close to 61.40 would affect the bearish trend, introducing a sideways trend.