Forex has remained rather cautious as central bank ramifications lurk from the ECB, BoE and Federal Reserve. Gold continues to be challenging and has sold off this morning. The Euro has been moved in a very cautious range.
EUR/USD: Locked into Tight Range
The Euro has been in a rather locked in range early this week. Investors clearly have been cautious as they await tomorrow’s European Central Bank decisions. The Euro is near 1.1760 and traders looking to take advantage of small moves in the currency should have risk management in place to guard against a sudden breakout.
Gold: A Challenging Trading Environment
Gold’s whipsaw trading range continues to boil. The precious metal is once again testing support as selling has dominated early this morning. Gold is near 1273.00 U.S Dollars an ounce and traders with courage may be tempted to look for a reversal upwards in the near term. Gold remains a challenging trading environment.
GBP/USD: Choppy and Cautious Short Term
The Pound has returned to the lower rungs of its recent value. The British currency is traversing above the 1.31 level against the U.S Dollar. Central bank ramifications have brought caution into forex and the Pound has certainly seen a choppy range. Traders may continue to look for short-term upside potential.
Crude Oil: Upside Remains Intriguing for Crude Oil
Crude Oil continues to trade in a rather quiet manner, but it has added more value over the past twenty-four hours and is now above 52.00 U.S Dollars a barrel. Crude Oil Inventories will come from the U.S today and speculators may be tempted to look for more upside.
USD/JPY: Edging Towards Important Resistance
The Yen has weakened early this morning. The Yen is near the 114.00 level against the U.S Dollar and continues to test resistance. The heights being achieved by the Nikkei Index continue to indicate more potential weakness for the Yen as risk appetite appears unwavering.
Yaron Mazor is a senior analyst at SuperTraderTV.
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