The EURUSD pair is showing some slight upward movement to offset some losses in recent sessions as the pair trades near its lowest level since October 9, following Economic Developments and Data on Tuesday from the EuroZone and the US Economy, the world’s largest economy.
We have followed the EuroZone economies to reveal the Consumer Price Index which showed a rapid growth rate of 0.4% in line with expectations compared to 0.4% in August. This came in conjunction with the Index of the confidence of the Economies of Germany and the Euro Zone as a whole, which showed an expansion below expectations in Germany and shrinking the expansion beyond expectations in the euro area as a whole.
Technically, the return of selling pressures on the pair’s move would consolidate the previous Bearish trend. A break below the near support levels at 1.1750 will consolidate the declines and open the door to test the levels of 1.1719, and only the return of the price above the resistance level at 1.1775 would ease the selling pressure temporarily.
The British Pound (GBP) saw weak trading during the Asian Session on Wednesday, after falling sharply yesterday despite British Inflation Data which came in line with expectations. Yesterday, the royal currency was negatively affected by comments from the Bank of England Chief, Mark Carney to the Parliament, which pointed to Inflation expectations to rise to 3% in the coming period. The Bank however, may not be able to raise Interest Rates in the current period.
Technically, we see that the GBPUSD pair is moving within a descending channel and across the moving averages (20,50) towards the downside. Further consolidation and break below the support levels near 1.3150 would open the door to test the 1.3107 levels, and only the return of prices above the resistance level at 1.3200 would reduce temporary selling pressures.
The US Dollar is rising against the Swiss Franc. The pair’s success in breaching and stabilizing above the near resistance levels at 0.9785 will strengthen the optimism and push the price test to 0.9806 levels. Only a rebound below 0.9770 support would temporarily ease optimism.
The US Dollar rose against the Yen on Wednesday as the Yen suffered some pressure in the absence of Economic Data as well as weak volumes. The markets wait for China Data after midnight GMT, as well as the results of the Communist Party of China Conference, to develop the five-year plan for the country.
Technically, breaching the near resistance levels at 112.30 and stability above these levels would affect the recent bearish trend and reinforce further gains to resistance areas around 112.50. If the pair retreats and manages to break the 112.15 levels, the move will consolidate further declines and possibly hit support areas at 112.85 levels.
Gold prices traded at a bearish range in today’s Asian Session, after a sharp drop yesterday as the Dollar recovered after finding support from improved Economic Data from the US, as well as Federal Reserve Chairman Janet Yellen’s comments on the strength of the US Economy.
The return of selling pressures again on the movement of the pair will consolidate the previous bearish trend. A break below the near support levels at 1282 will consolidate the declines and open the door to test the 1277 levels alone. The return of the price above the resistance level at 1287 would ease the temporary selling pressure.