The Euro saw a recovery in Asian trading on Wednesday after hitting a three-week low yesterday, as market watchers focus on the G-20 Meeting as well as the Federal Reserve Meeting. The G-20 Ministers have rejected a US Trade Protection Policy and urged more dialogue on global trade, but failed to eliminate trade-related threats before starting tariffs on US Mineral imports. There is also focus on developments regarding Washington’s actions against China.
Reading is negative for the EURUSD pair and there is also clear indication toward a downtrend on the price movement. The price is expected to keep on the downside until the price target at 1.2240
The GBPUSD fluctuated in a narrow upward bias against the US dollar, during the Asian session, following developments and economic data from the UK yesterday. Economists are split over whether the Bank of England will raise interest rates in May, as it tries to get inflation back down to 2% without driving up unemployment. The consumer prices index fell to 2.7% in February, down from 3% in January, and closer to wage growth, the lowest since July 2017.
Technical reading shows that GBPUSD prices are trying to catch a breath after the recent strong rally. With no signs of a general upward trend change, a break of support levels at 1.3980 would allow prices to fall further and likely test 1.3950 levels
At the same time, a breach of near resistance levels at 1.4020 would re-introduce an uptrend, causing the prices to possibly test 1.4060 levels.
The US Dollar fluctuated against the Japanese Yen in a sloping range after two profitable sessions. The JPY appears to have been hovering on overbought, dragging it back in today’s session ahead of the FOMC Press Conference later today.
Despite recent gains, the USDJPY pair still has to break above the resistance levels at 106.45 and 106.70 to confirm a continued uptrend. A drop below the support at 106.20 would affect the recent uptrend and cause a sideways trend.
Gold prices were on the rise during the Asian session on Wednesday, recovering some of yesterday’s losses. The recovery comes at the expense of the Dollar’s slide against the majors ahead of the Federal Reserve’s Interest Rate Decision later today.
The US dollar rose against its major counterparts yesterday, amid expectations that the Federal Reserve is on track to raise interest rates during its meeting this week, boosting dollar movements.
Technical reading shows that prices are trying to absorb recent selling pressures. With no clear signs of a reversal of the overall bearish trend, if prices manage to break through 1314 resistance levels, it would allow for a correction toward the upside, and possibly a test of the second resistance at 1320 levels. A break of support however, at 1310 levels, would possibly consolidate the downtrend.