The Euro rose slightly during Wednesday’s session and for the second day in a row as holding firm against the current volatility in the financial markets, especially after the persistent decline of US and Global Stocks since the beginning of the week.
Economic Data from the Euro Zone have read strong and there is high expectation that the ECB will withdraw its Monetary Stimulus and commence tightening Monetary Policy to generally provide support to the Euro.
Technically, following the recent declines witnessed by the EURUSD pair, a formation of a negative divergence has been observed, but prices still have to break and stabilize below the levels of support at 1.2370 and 1.2350 in order to confirm a continued decline. A break of the resistance levels close to 1.2390 would affect the recent downward trend and initiate a sideways trend.
Technical reading shows that the AUDUSD pair is trying to absorb the recent selling pressures with no clear signals of change to the overall bearish trend. If the pair breaks through the resistance levels at 0.7910, there is likely to be a correction toward the upside, and perhaps a second resistance test at 0.7950 levels. A break of the support level at 0.7880 would likely establish a continued downtrend.
The US Dollar weakened against the Japanese Yen during the Asian session on Wednesday, after a strengthened rally yesterday on the back of the Equities saga yesterday.
The return of selling pressures on the pair’s move would reinforce the previous bearish trend. A break below the near support levels at 109.00 would consolidate the pair and likely proceed to test the 108.40 levels. A return of the price above the resistance level at 109.30 would however, temporarily ease the selling pressure.
Gold prices advanced during the Asian trading session on Wednesday, following the weakening yesterday which recorded a four-week low as the US Stocks rebounded just before the closing bell on Wall Street.
Today, the price of Gold has returned to a new high due to the Dollar’s early decline. The return of selling pressures on the movement of Gold prices will reinforce the previous bearish trend. A break below the support levels at 1324 will consolidate the declines and likely proceed to test the 1314 levels . A price reversal above the resistance level at 1330 would however, temporary ease selling pressure.