The Euro moved slightly weaker during the Asian trading session on Wednesday after falling in yesterday’s trading as the markets await the release of data on the EuroZone as well as the Fed Meeting Minutes.
The EuroZone industrial sector is expected to fall to 59.2 from the previous reading of 59.6, while the services sector may fall to 57.7 from the previous reading of 58, which was revised from 57.6.
Markets are waiting for insight on the frequency of Fed rate hikes this year, and whether interest rates will be raised at the Bank’s next meeting in March as expected, or whether the bank may change its policy.
Despite the recent declines in the EURUSD pair, prices still have to break and hold below support at 1.2300 1.2280 to confirm ta continued decline. The breach of resistance levels near 1.2335 would affect the recent bearish trend and introduce a sideways trend.
The Australian Dollar fell on Wednesday to its lowest level in a week, after today’s mixed data from the Australian Economy and the Dollar recovery.
Wages for the fourth quarter of last year rose unexpectedly by 0.6%, better than both expectations and the previous reading by 0.5%. However, wage growth is still well below the long-term average. At the same time, Inflation remains below the RBA’s target of 2%, prompting investors to believe that the Australian Central Bank will possibly delay before raising interest rates.
The return of the selling pressures on the AUDUSD pair’s movement would reinforce the previous bearish trend. A break below the support levels near 0.7835 will consolidate the declines and possibly cause a test at the levels of 0.7770. The return of the price above the resistance level at 0.7850 would temporarily ease selling pressure.
The recovery of the Dollar against the major currencies and its recovery from the three-year low recorded last week helped push the Yen to end its high rise as well as the Japanese Data and the rise in Asian Stock Indices.
Despite recent gains, the USDJPY pair still has to break above stability levels at 108.00 to confirm a continued uptrend. A drop below the support at 107.40 would affect the recent uptrend and introduce a sideways trend.
Gold prices fell for the fourth consecutive session to the lowest level this week, as the US Dollar continued to recover against major currencies ahead of the Fed Meeting later in the day. The recovery of Asian Stock Indices, also helped to reduce the demand for the precious metal as a safe haven and alternative investment in the markets.
Despite the recent declines in Gold prices, it still has to break and stabilize below the support levels at 1326 and 1320 in order to confirm a continued downtrend. The breach of resistance levels close to 1330 levels would affect the recent bearish trend and introduce a sideways trend.