The Euro saw a rise in Asian trading on Wednesday for the second session after recording a seven-week low against the Dollar, which witnessed a drop ahead of the Fed Chairman’s speech today.
Technical reading continues to show that prices are still moving within the framework of a positive correction to the general bearish trend.
Resistance levels at 1.1770 and 1.1790 are still considered to be the most important short-term levels. These levels are likely to bring sellers back to the market while at the same time any short-term trend reversal will negatively affect price action.
Looking at the chart on the 4 hour timeframe we notice that the recent highs were able to break through the downline sell line.
The return of selling pressures on the GBPUSD’s movement would reinforce the previous bearish trend. A break below the support levels near 1.3220 will consolidate the pair and further test the 1.3160 levels. The return of the price above the resistance level at 1.3270 would temporarily ease the selling pressure.
The US Dollar fell against the Japanese Yen on Wednesday. The Yen is recovering despite the rise of Japanese Stocks today. The technical reading shows that prices are still moving within the framework of a negative correction to the general upside support levels at 112.40 and 112.24. These levels are still considered the most important levels in the short term and the strength of the pair above these levels would restore the confidence of buyers again, and at the same time any indication of change of trend over the short term, will positively affect the movement of prices
XAUUSD/ Spot Gold
XAUUSD prices are trading slightly higher today as the financial markets in China, Taiwan and South Korea are absent due to holidays. Spot Gold in the recent past, has recorded the lowest level in seven weeks as negative pressure on the precious metal continues.
Technical reading shows that the pair is trying to absorb recent selling pressures with no clear signals to reverse the overall downward trend. The pair managed to breach the 1280 resistance levels that would allow the market to correct higher, and possibly test the second resistance at 1286 while breaking the support level at 1273 would cause a re-entry of the bears.
Looking at the 4-hour chart, we notice that recent highs have broken through a falling wedge line.
Crude Oil prices fell for a third straight day on Wednesday as Data from the US stockpile of Crude Oil came in mixed last week. Despite the recent declines in prices, a stability below the support levels at 49.90 and 49.60 will confirm the continuity of the decline. Breaking the resistance levels close at 50.20 would affect the recent bearish trend and cause the market to head towards a sideways movement.