EUR/USD
Range: 1.3331 – 1.3452
Support: 1.3200
Resistance: 1.3470
The Euro continued to slide further against the US Dollar during the Asian session, reaching a new intraday low at 1.3330, this came after touching a new 9-day high at 1.3421. This high was the result of the Fed’s Bernanke speaking about the US economy, in which he expressed concern about the growing unemployment. Last week’s trade in the Euro was dominated by the story that the IMF would boost aid through the dollar, and later of speculation that the ECB was going to increase its efforts to stabilize the regions markets. This week could prove a pivotal week for the Euro, as it tries to regain an upper hand over the USD.
GBP/USD
Range: 1.5737 – 1.5770
Support: 1.555
Resistance: 1.5800
The British Pound pushed higher against the greenback last week. However market participants will shift their focus to the BoE’s interest rate decision and asset purchase target. The central Bank will no doubt remain on hold in both areas. This week’s price action will again be dominated by debt contagion fears in the Eurozone and tension in North and South Korea. Any further negative developments in either of these regions will see traders seek safety in the way of the Greenback.
Gold prices have pushed back above $1400/oz as market participants diversify away from the US Dollar, and bullion may push higher over the coming weeks as investors look for an alternative to the reserve currency. The precious metal could certainly make another attempt at the record high of $1424/oz this week, as a bearish sentiment underlying the greenback is starting to resurface. Again as fears surrounding European debt and conflict in Korea continue to weigh on investor confidence, gold prices will no doubt push higher as people seek a safe haven.
