Equities Turn Slightly Weaker Near the Top

0 104

Equity markets were seen trading rather flat for the third consecutive day. The rally looks to be pausing for the moment as the earnings season gets underway.

The declines were attributed to mostly weaker banking stocks leading the way. On the economic front, data from the US was rather quiet.

Euro Falls on Dovish ECB Comments 

The European Central Bank held its monetary policy meeting on Thursday. The central bank left interest rates unchanged as widely expected. The central bank also announced that it would begin a strategic review of its monetary policy.

At the press conference, ECB Chief Lagarde cited that downside risks for the euro still remain. This saw the markets reacting negatively to the comments.

Test your strategy on how the euro will fare with Orbex - Open your account now. 

EURUSD Breaks Out to the Downside

The euro broke past its sideways range to the downside. Losing over 0.4% on the intraday basis, EURUSD is now likely to continue to drift lower. The next major support area is at the 1.1000 region, which offers psychological support.

In the near term, the currency pair might retrace losses and retest the 1.1072 level to establish resistance.

EURUSD

Sterling Falls as Brexit Becomes Official

The pound sterling reacted negatively to the news after UK lawmakers officially passed legislation to make the Brexit deal official.

It is now pending with the European Union officials, who have until next week to pave the way for the UK’s exit from the EU. Following the agreement in the parliament, the legislation received the royal assent.

GBPUSD Declines to be Limited for Now

The current declines in the GBPUSD coincide after the currency pair broke past the 1.3100 level. The retracement will see the GBP testing the level of 1.3100 where support could now be forming.

As long as this level holds, GBPUSD remains biased to the upside with 1.3226 being the next target.

GBPUSD

Gold Prices Continue to Consolidate

The precious metal continues to remain trading flat, albeit close to the seven-year highs. The dovish ECB message saw some bounce in the precious metal, which faded over the intraday session.

Gold prices were also muted to the weekly jobless claims report. With the Fed meeting due next, we expect this flat trading to continue.

XAUUSD Testing the Resistance

The precious metal pared losses and is once again back near the resistance area of 1562. The ascending triangle pattern remains in play. An upside breakout will potentially trigger further gains.

However, this will put gold prices to test the previous highs. Failure to breakout higher could result in either price consolidating or perhaps correcting lower.

XAUUSD

TradingGold

START TRADING

or practice on DEMO ACCOUNT

Trading CFDs Involves high risk of loss

Leave A Reply

Your email address will not be published.