Technical Market update
EUR/USD stays pressured around the key level of 1.2180-75 amid the early Asian session on Thursday. The pair refreshed weekly top the previous day before reversing from 1.2218. Recently the pair failed to break the key level of 1.22. The ECB will be announcing its monetary policy decision later in 1945 (GMT+8). A press conference will also be held in 2030 (GMT+8). We can expect the volatility in EUR during this time. The pair is moving towards the support zone of 1.21500 and the next resistance zone is at1.23200. Look for the buying opportunities of EURUSD if it bounces up from the support zone of 1.21500.GBP/USD
Recently the pair weakened after the EU threatened to take retaliatory actions on the UK for the latter’s refusal to implement post-Brexit trading arrangements in Northern Ireland. BOE committee member Haldane will be speaking later in 2005 (GMT+8). During this time, we can expect volatility in GBP. Currently, the pair is moving towards the key level of 1.41. Its next support zone is at 1.40000 and the next resistance zone is at 1.43500. Look for short-term selling opportunities of GBPUSD if it breaks below the key level of 1.41. Overall the pair is ranging across.
AUD/USD is trading little changed above the level of 0.7700. The next support zone of the pair is at 0.75500 and the next resistance zone is at 0.78000. The Australian Inflation Expectations data released earlier today indicated an increase in the expectation of future inflation. US-China agrees to push forward trade, investment ties. US treasury yields remain pressured near March lows while the US Dollar trades firmer ahead of the all-important US CPI data. Look for short-term buying opportunities for the pair.
Currently, the pair is testing the resistance zone of 1.21000 and the next support zone will be at 1.19000. During the monetary policy meeting yesterday, the BOC held policy unchanged. The Central Bank acknowledged that economic growth was robust despite the second wave of the COVID virus. The pair is trading flat on the day so far. Nonetheless, the BoC remains optimistic in a strong economic rebound as vaccinations are administered at a faster pace and lockdown restrictions are likely going to be eased. Look for short-term buying opportunities if it breaks the resistance zone of 1.21000.