The Euro edged higher during Wednesday’s trading session after falling sharply yesterday to a one-week low thanks to the Dollar’s consolidation.
Despite recent declines in the pair, prices still have to break and hold below support levels at 1.1920 and 1.1900 to confirm the a continued decline. Breaking the resistance levels close at 1.1950 would affect the current bearish trend and cause the market to proceed on a sideways movement.
The British Pound weakened during the Asian session against the US Dollar amid a lack of economic data from the British Economy and release of Economic Developments and Data from the US Economy, the largest economy in the world.
Technically, the reading continues to show that prices are still moving within a negative correction toward a general upside. The 1.3520 and 1.3500 support levels remain the most important short-term levels and the pair’s strength above these levels will restore the confidence of the buyers, but any signs of trend change over the short term will positively affect the movement of prices.
The US Dollar continued to decline against the Yen for the second day in a row causing the yen to hit a one-week high against the Dollar. The demand for the Japanese currency surged after the Bank of Japan abruptly cut purchases of Government Bonds, reducing its 10-25 year Bond Purchases to 10 billion Yen from ¥200 billion at its last purchase, while buying its 25-Year to ¥80 billion compared with ¥90 billion during previous acquisitions.
As a result, the demand for the Yen has increased as an alternative investment after the decline of Asian Stock Indexes today to intervene in the case of correction and profit after the levels recorded since the beginning of the year.
The return of selling pressures on the pair’s movement would reinforce the previous bearish trend. A break below the near support level at 112.20 will consolidate the pair and cause a test at the 112.00 levels alone. The return of the price above the resistance level at 112.40 would temporarily ease selling pressure.
The price of Gold fell during the Asian session on Wednesday to reach the lowest level in four sessions.
Technical reading still shows that prices are still moving within a negative correction to the general upside. The support levels at 1310 and 1307 are still considered the most important short term levels and the stability of prices above these levels would restore the confidence of the buyers. On the short term however, a reversal will positively affect the movement of prices