The Euro rose today for a third session in a row as the Dollar fell against major currencies following strong data on economic growth in the Eurozone. The decline of the Dollar moved investments toward safe haven assets and European currencies such as the Euro and the Sterling, as Investors await the release of Inflation Data from the United States of America later today.
Despite recent gains, the EURUSD pair still has to break above the resistance levels at 1.2380 and 1.2400 to confirm a continued uptrend. A drop below support at 1.2345 would affect the uptrend and introduce a sideways trend.
The Australian Dollar rose on Wednesday to continue recovery against the US Dollar despite the negative Data released today from the Australian Economy i.e. decline in Consumer Confidence.
The recovery of the Australian Dollar comes as the US Dollar loses more confidence in the markets this week in anticipation of US Inflation Data.
Technical reading shows that prices are still moving within the framework of a positive correction toward a general bearish trend. Resistance levels at 0.7880 and 0.7900 are still considered to be the most important short-term levels and these levels are likely to re-establish a downward trend to the pair while on the other hand, a short-term trend reversal will negatively impact the movement of prices.
The Dollar continued to depreciate against the majors, further strengthening the Yen’s strength in today’s highs since November 2016 against the Dollar, as demand for safe haven markets rallies, as well as less-than-expected growth data from Japan.
Negative technical reading for the USDJPY pair and a clear control over the price movement is expected to keep the pair on a downward trend until the price target of 106.80.
Despite recent gains, the GBPUSD pair has to break above the resistance at 1.3920 to confirm a continued rally. A drop below the close support at 1.3875 would affect the recent uptrend and introduce a sideways trend.
Gold prices rose on Wednesday as demand for safe haven markets rallied amid mixed Asian stock movements, as markets await US Inflation Data which will shed some light on the Federal Reserve’s interest rate guidance.
Technically, despite recent price hikes, the price of Gold still has to break above stability levels at 1337 and 1345 to confirm the continued uptrend. A drop below the near support levels at 1330 would affect the recent uptrend and introduce a sideways trend.