Financial markets were mixed today. The Euro and Pound edged lower against the US dollar, while Gold prices fell due to a combination of factors including a weaker safe-haven demand and a potential rise in US interest rates. The Japanese Yen held steady ahead of a potential Bank of Japan rate hike next week. Bitcoin also saw a pullback from its recent high due to concerns over repayments from Mt. Gox. The only bright spot was the launch of an Ethereum ETF, which could have a positive indirect impact on Bitcoin.
EUR/USD:
- Recent Performance: Gained on Tuesday despite weak US data.
- Technical Analysis: Bullish trend on the hourly timeframe, but close to changing.
- Support at 1.087,
- Resistance at 1.0905.
- Forecast: EUR/USD could see choppy trading today. Upside potential is limited if the price doesn’t break above 1.0905.
- Key data point to watch: Eurozone flash PMIs. A better-than-expected report could strengthen the Euro.
GBP/USD:
- Recent Performance: Edged lower on Tuesday.
- Technical Analysis: Bearish trend.
- Support at 1.2862,
- Resistance at 1.2954.
- Forecast: GBP/USD might remain pressured today. Downside risk if it breaks below 1.2862.
- Key data point to watch: UK PMIs. A strong reading could provide some support to the Pound.
USD/JPY:
- Recent Performance: Held steady on Tuesday.
- Technical Analysis: Medium-term bearish trend.
- Support at 155.84.
- Resistance at 156.86.
- Forecast: USD/JPY might trade sideways today. Upside potential is limited if it doesn’t break above 156.86.
- The Bank of Japan meeting next week could be a key driver for the Yen.
XAU/USD (Gold):
- Recent Performance: Dropped on Tuesday due to a stronger dollar and risk appetite.
- Technical Analysis: Downtrend.
- Support at 2391
- Resistance at 2400.
- Forecast: Gold could remain under pressure today. A break below 2391 might lead to further decline. However, a technical correction is also possible.
- Bulls need a break above 2400 to gain control.
BTC/USD (Bitcoin):
- Recent Performance: Fell from a recent high due to Mt. Gox repayment concerns.
- Technical Analysis: Short-term pullback
- Support at 64370
- Resistance at 68486.
- Forecast: Bitcoin might see some volatility today. Support levels will be crucial to watch.
- The launch of the ETH ETF could have an indirect positive impact on Bitcoin.
Additional factors to consider:
- Upcoming PMI data for the Eurozone and UK.
- Bank of England meeting.
- Potential interest rate cut by the Federal Reserve.
- Movements of Bitcoin by Mt. Gox.
Categories: Market News
