EURUSD traded weakly during the Asian Session Wednesday, staying close to a five-week low, as negative pressure on the Euro increased after Federal Reserve Chairman Yellen’s speech yesterday. The Fed Chairman raised expectations of an increase in the US Interest Rate in December, which prompted the Dollar to rise, increasing negative pressure on the Euro.
Draghi’s comments and the results of the German Elections, has also contributed in the Euro being pushed lower since the beginning of the week.
The return of selling pressures on the pair’s move would reinforce the previous bearish trend. A break below the support levels at 1.1770 and 1.1750 will consolidate the declines and introduce a test on the 1.1680 levels. A bounce back above the resistance level however, would temporarily ease selling pressure.
GBPUSD declined for the fourth session in a row against the US Dollar, and the technical reading still shows that prices are still moving within the framework of a negative correction to the general upside. Support levels at 1.3407 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. At the same time, any indication of a change in direction on the short term will positively affect the movement of prices.
USDJPY continued to appreciate during the day as the Yen remained close to yesterday’s low given that demand for safe haven declined. Yellen’s speech also contributed to the rally. The rebound of the pair should reinforce the previous bullishness. The success of the pair in breaching near resistance levels at 112.54 will enhance the optimism and push the price to test 112.70. Only a return of prices below the 112.15 resistance level would temporarily ease the optimism.
NZDUSD has declined for the third session in a row. The technical outlook is negative for the pair and the sellers have a clear control over the price movement, which is expected to continue to fall until the target price 0.7160.
Gold prices rose slightly during the Asian trading session Wednesday, stabilizing moves near the lowest level in a month. This occurs as markets are ready to accept the new tax cuts introduced by the administration of US President Donald Trump.
The return of the selling pressures once again on the price action would reinforce the previous bearish trend. A break below the support levels near 1290 will consolidate the declines, and open the door to test the 1284 levels alone. The return of the price above the resistance level at 1297 would ease the temporary selling pressure.
West Texas Crude prices rose during the Asian session on Wednesday after the US Petroleum Institute report showed an unexpected drop in US Inventories of Crude Oil, which helped prices to rise and trade near the highest level in five months.
Retreating to a buy back would strengthen the previous bullishness. The success of the pair in breaching near resistance levels at 52.43 will enhance the optimism and push the price test to 52.60.
Only the return of prices below the resistance level of 52.10 would temporarily ease the optimism.