Daily Technical Analysis. Wednesday, October 25
The Euro saw weak trading during the Asian Session on Wednesday to continue the volatility of the single European Currency since the beginning of the week, this comes as markets wait for the ECB to release its Meeting Minutes tomorrow.
Today, the Eurozone Economy will release the German Business Climate Index for October, and the actual reading is expected to be identical to the previous reading at 115.2
Technically, the return of selling pressures on the EURUSD pair would reinforce the previous bearish trend. A break below the near support levels at 1.1745 will consolidate the declines, and open the door to test the 1.1725 levels. Only a return above 1.1770 resistance level would temporarily ease selling pressure.
The British Pound fell for the second consecutive session against the US Dollar, as the US Dollar strengthened following positive Data on the US Economy.
The European Chief Negotiator for Brexit Michel Barnier, has spoken that Britain can expect a trade deal, little better than the one the EU struck with Canada. Barnier also said that an unregulated departure by Britain would cause problems for both Britain and the EU.
Technically, the GBPUSD pair is moving within a triangle waiting for its daily period. The renewed pressure on the pair will reinforce the previous downtrend. A break below the support levels near 1.3115 will consolidate the declines and open the door to test the 1.3075 levels. Only a bounce back above 1.3150 resistance would temporarily ease selling pressure.
The Dollar continued to rise against the Yen, causing the Yen to hit a three-and-a-half-month low following recent US Data and the markets’ anticipation for a new Federal Reserve Chairman.
On the other hand, Japanese Stock Indexes rose to record levels during the last period, which increased the decline in demand for the Japanese Yen, which is an alternative investment to the stock markets.
Technically, a fresh rebound could strengthen the previous bullishness. The pair’s success in breaching near resistance levels at 113.95 will boost optimism and push the price test to 114.30 levels. A return of prices below the 113.50 resistance level will temporarily ease the bias.
The pair’s success in breaching near resistance levels at 0.9910 and stability above these levels will enhance the optimism and push the price test to 0.9950 levels.
A return of prices below the 0.9885 resistance level would temporarily ease the bias.
Gold prices fell on Wednesday for the second day in a row, as the Dollar consolidated after yesterday’s Data from the US Industrial and Services Sector.
Markets are closely following developments in the appointment of a new Federal Reserve Chairman to succeed Janet Yellen, the current President, whose tenure comes to an end in February.
Technically, prices are moving in a general downtrend. A break below the near support levels at 1270 will cause the prices to further decline reaching its next target of 1265. The positive key to easing the selling pressure is breaching the 1277 resistance.
According to the chart, Gold prices over the four hour period will move within a bearish wedge.