The Euro continued to rise during the Asian session on Tuesday, for the third session in a row, trading at a five-week high, supported by falling dollar levels against major currencies. Important data has changed the EuroZone so far but the single European currency is yet to gain momentum following the calm caused by the EU obtaining US Tariff exemption.
The EURUSD pair’s success in breaching resistance levels at 1.2460 will boost optimism and push the price test to 1.2490. A price reversal of prices below the support level of 1.2440 support will however, ease optimism.
The US Dollar rose against the Japanese Yen in Asian trading on Tuesday, as Asian Stocks rebounded and the Yen received a sell-off following yesterday’s 16-month high.
Technical reading shows that prices are still moving within the framework of a positive correction toward a general bearish trend. Resistance levels at 105.65 and 105.80 are still considered the most important short-term levels, and these levels are likely to cause a price reversal. A short-term trend reversal will however, negatively affect price action.
The US Dollar fluctuated against the Canadian Dollar in a bullish range, after a strong decline last week as the US Dollar fell against major currencies, and positive data was released by the Canadian Economy.
Technically, the return of selling pressures on the USDCAD pair’s movement would reinforce the previous bearish trend. A break below the support levels near 1.2820 will consolidate the declines, and cause a test at the 1.2800 levels. A return above 1.2860 resistance level would temporarily ease selling pressure.
Gold prices managed to stabilize during Tuesday’s session at the highest level in five weeks. This comes in light of the negative pressure on the levels of the Dollar, in addition to the recovery of Asian stocks.
Asian stocks rose strongly in today’s session amid optimism over talks between China and the White House in attempts to avoid a trade war.
The rebound in the yellow metal’s recent uptrend will help strengthen the bullishness. The price success in breaching near resistance levels at 1355 will boost optimism and push the price test to 1360 levels. A price reversal below the 1345 support level would however, ease the bias.