Trading was rather subdued on Wednesday. On the economic front, the University of Michigan report showed that sentiment eased to 97.5 in November. This marked a three-month decline.
The durable goods orders report showed a 4.4% monthly decline which was worse than the 2.2% decline that was forecast. Core durable goods orders rose just 0.1% below estimates of a 0.4% increase.
In the Eurozone, the European Commission recommended taking disciplinary action against Italy for its budget plans. The news did not have much impact on the Euro currency.
The U.S. markets are closed today due to the Thanksgiving holiday.
Elsewhere, economic data is also sparse. The European Central Bank will be releasing the meeting minutes from the recently held monetary policy meeting.
No major surprises are expected from the minutes although officials might remain cautious on inflation and economic growth.
The NY trading session will see a BoC official speaking which will be followed later by the BoC financial system review.
Later in the evening, the Bank of England monetary policy committee member Saunders is expected to speak.
EURUSD intraday analysis
EURUSD (1.1398): The EURUSD currency pair was seen drifting sideways following the test of the resistance level at 1.1435 – 1.1460 level. Price action attempted to post a modest rebound forming a lower high. We expect another attempt to test the resistance area. Failure to break the resistance could keep the common currency range bound. However, this increases the risk of a downside retest back to the support area. The retest at 1.1315 – 1.1300 could mark a test of support and the breakout from the falling trend line.
GBPUSD intraday analysis
GBPUSD (1.2786): The GBPUSD currency pair was consolidating near the support level of 1.2808. Price action is seen trading subdued at this level. However, the retest of the lower support level at 1.2683 is still pending. This could potentially keep the GBPUSD biased to the downside. If we see a rebound off 1.2808, then the GBPUSD is likely to be limited in its gains to the upside.
XAUUSD intraday analysis
XAUUSD (1227.26): Gold prices were seen to be gradually extending the gains after price action managed to clear the resistance area of 1223.50 rather strongly. The close above this level signals potential rally toward 1238.00 level. This marks a retest of the resistance area. Failure to maintain the gains could, however, keep gold subdued to the downside. The initial minor support at 1213.50 remains a key level of interest. A break down below this level could trigger further declines down to 1204.00 level of support.