Euro Steadies Ahead of ECB Meeting
EURUSD is trading rather flat with the previous session’s volatility easing. This comes ahead of today’s ECB monetary policy meeting. As investors await the ECB’s announcement of easing measures, the downside pressure on the euro could build up.
Price action is currently near the 1.1300 handle. But there is scope for a decline to 1.1200 level. In the near term, we could expect this range to hold. But a lot will depend on how investors react to the ECB meeting today.
Sterling Unmoved by BoE Rate Cut
The pound sterling did not react much, losing just 0.29% intraday. Price action briefly tested the 1.2960 level to establish resistance. Following this, GBPUSD fell to the lower support at 1.2860. The declines will only be accelerating on a break down below this level. Otherwise, we expect GBPUSD to move sideways within the said levels.
Will Crude Oil Resume Declines?
Oil prices are reversing the gains from Tuesday as prices remain weak. This comes amid developing fundamentals especially with talks between Russia and Saudi Arabia.
The Stochastics oscillator remains somewhat poised to the downside. This will potentially form a bearish flat pattern on the oil charts. The support level at 28.00 will be critical in this scenario. For now, the upside is capped at 35.00.
Can XAUUSD Close Below the 1655 Handle?
Gold prices attempted a rally earlier on Wednesday only to give up those gains. But price action is trading below the 1655 handle for the moment. A convincing close below this level is required, for now, to create the downside bias. The next support is at 1631 handle.
We expect gold prices to remain muted in the run-up to the ECB meeting. The direction in the prices could likely be set following the outcome of the monetary policy meeting.