Gold markets have rallied a bit during the trading session on Wednesday, reaching towards the $1500 level and perhaps more importantly the top of the wedge that it has been fighting. If we can break above that, it’s likely that gold will continue the uptrend.
The US dollar initially felt during the trading session against the Japanese yen on Wednesday, as the market continues to look for some type of catalyst to move. Trading has been very difficult over the last several days, not only in this pair, but many others as the market has nowhere to be.
The British pound has initially dipped during the trading session on Wednesday but has turned around to show signs of life again. By doing so, it looks as if we are ready to continue consolidating just below the 1.30 level, an area that is a large, round, psychologically significant figure.
The British pound has initially dipped during the trading session on Wednesday, but then turned around to show signs of strength again as we bounced back towards the ¥140 level.
The Euro dipped initially during trading on Wednesday but has failed to hang onto the losses. At this point, it’s likely that the market will continue to be very noisy.
The Australian dollar continues to go back and forth during the trading session on Wednesday as market simply have nowhere to be. Overall, this is a market that can’t make much of a decision other than the fact that it’s possible to form a consolidation area.
It has been an uneventful Wednesday session, with the Canadian, Mexican and British currencies showing little movement. With no major U.S. events on the schedule, traders can expect the lack of activity to continue in North American trade.
Mario Draghi is credited with saving the euro and building the ECB into a much more powerful institution, but he leaves it divided amid doubts over what’s left in its monetary policy toolbox.
The main trend is up according to the daily swing chart. However, Tuesday’s closing price reversal top at .6883 and today’s subsequent confirmation has shifted momentum to the downside. Over the near-term, we’re going to see a break into at least .6803, or a breakout over .6883.
Based on the early price action and the current price at 1.1116, the direction of the EUR/USD the rest of the session on Wednesday is likely to be determined by trader reaction to the long-term downtrending Gann angle at 1.1109.
Investing.com -- Gold prices rose a little on Thursday but couldn’t get back above $1,500 an ounce as U.S. earnings failed to generate much additional pressure on the Federal Reserve to cut interest rates at its policy meeting next week.
Uncertainty over Brexit is supporting gold on Wednesday, but so far the move represents only a short-term, knee-jerk reaction to yesterday’s developments. The move is most likely being fueled by some light speculative buying by traders betting on the worst outcome and weak shorts lightening up on their bearish positions.
Investing.com – Wall Street was mixed on Wednesday after earnings from Caterpillar (NYSE:CAT) and Texas Instruments (NASDAQ:TXN) caused hesitation over the impact of the U.S.-China trade war.
UK PM Johnson received a major defeat in parliament yesterday that threatens the prospect of an EU exit by the October 31 deadline.
The USD/JPY is likely to remain under pressure until the European Union (EU) responds to the request to delay the current Brexit deadline of October 31.
EUR/USD pared gains for a second consecutive session on Tuesday after headlines indicated a Brexit deal is not likely to materialize before the October 31 deadline.
Asian stocks are mixed after US equities posted declines, as Brexit risks took hold of market sentiment in the absence of other major catalysts.
“What is the best predictor of future behavior? Past behavior.” And while this certainly does not always hold, there is a lesson to be learned from this adage for gold investors.
Boris Johnson struggles to push the Brexit agreement through the British Parliament. For it can bite back! Who wins this battle? One could hope that gold, but this is not so certain…
It was a sleepy Asian session, as the Aussie, NZ dollar and Chinese yuan remain range-bound. With no major U.S. events on the calendar, it looks like the calm will continue for these currencies in the European and North American sessions.