Euro Slips as ECB Fails to Deliver – Is the Uptrend Over?
The euro fell as much as 1.78% intraday on Thursday. This follows the ECB meeting where interest rates were left unchanged. However, the ECB did announce stimulus measures.
Investors were clearly disappointed pushing the euro to retrace nearly half its gains from earlier. Price is currently testing the major trend line. We expect a modest rebound which may keep prices limited to the 1.1200 handle for the moment.
Sterling Slips to a 5-Month Low to the Dollar
The pound sterling gave up the gains and fell sharply on Thursday. This coincides as neighboring Ireland and Scotland announced new measures to tackle the COVID-19 pandemic.
GBPUSD is down over 2.18% and is more pronounced compared to the BoE decision on Wednesday. Price is trading at 1.2585 and is threatening to break down lower. A break of this floor could open the way for a drop to 1.2200.
WTI Crude Oil Stuck in a Range Amid Uncertainty
Crude oil prices are steadily declining after the recent rally to the 35.00 handle. Price action is in a steady short term decline. However, the momentum to the downside is starting to slow.
Going by the Stochastics oscillator, we could expect a possible attempt for a retest of the 35.00 handle. While to the downside, the previously established floor at 28.00 remains within reach. Given the market conditions, it would be a bit too early to call the direction in WTI crude oil prices.
XAUUSD Back at Familiar Support – But Will it Hold?
Gold prices fell sharply on Thursday, down over 3%. This comes after price broke below the initial support level at 1631.90. There was a brief momentum when gold was poised to pullback. However, the failure at 1631 saw prices dropping down to 1594 and lower.
Currently, gold prices are testing the previous support at 1572 – 1568 region. So far, this level looks to be holding out. But a break down from here could put 1500 within reach.