Euro Drops As ECB Meeting Looms
The euro currency’s declines accelerated on Wednesday. The common currency is trading below the 1.2100 level which it held over the past few days.
The declines come as the ECB will be holding its monetary policy meeting. Speculation is high that the central bank will increase its bond purchases.
The current declines could stall near the dynamic support off the rising trend line. This could see a confluence of the 1.2000 level holding up for the moment.
However, if the 1.2000 level breaks, then the next key support to look for will be the 1.1900 level.
To the upside, price action could stall near 1.2100.
GBPUSD Volatile Within A Flat Range
The British pound sterling is giving back the gains made earlier. The volatility stems as Brexit negotiations drag on with no clear plan yet.
The GBPUSD is currently settled within 1.3483 and 1.3300 levels. While the lower end of the range was briefly tested earlier this week, it has held up.
The current pace of declines could see the 1.3300 support level coming under pressure once again.
If the cable loses this support, then we could expect to see further declines.
The next key support level is near 1.3122.
Crude Oil Falls Back To 45.50 Support
Oil prices continue to trade weak above the 45.50 level. Prices fell once again on Wednesday, testing the 45.50 level of support.
So far, no new highs have formed. This consolidation could lead to a potential correction if support gives way.
Below the 45.50, the next key support area is seen at the 43.50 level. We could expect this support level to hold in the near term.
It would also mean that oil prices could continue trading flat within the newly established range below the 45.50 level.
The Stochastics oscillator is also signalling a move lower. This could possibly confirm the downside bias for the moment.
Gold Edges Down To 1850 Support
The precious metal is seen retesting the support level of 1850 once again.
This comes as prices barely rose close to the 1880 level before giving back the gains. The market sentiment remains mixed leading to the rather flat price action for the moment.
However, the 1850 level will be critical. If gold prices lose this handle, then we could expect further declines to the 1800 level once again.
This would come as gold prices will likely test the 1817.80 level to the downside.