USD Steady at a Two-Week High

The US dollar was seen holding on to the gains, settling near a two-week high by Thursday’s close. The gains came as the trade tensions eased and focus once again shifted to the economic data.

A delegation from Washington is expected to travel to Beijing in order to continue the trade talks, according to reports. The risk-off sentiment eased further as investors flocked to risky assets, pulling out from safe haven assets.

Euro Declines for the Fourth Session

The common currency posted declines for the fourth consecutive session. The euro closed near a 7-day low. The US administration postponed the hike in tariffs on automobile imports that were due to come into effect this weekend. The eurozone’s final inflation report is due today. Economists forecast that final inflation figures for April will see headline inflation rising 1.7% while core inflation is forecast to rise 1.2% on a year over year basis.

Can the EURUSD Pare Losses?

The common currency fell to lows of 1.1172 on Thursday. Early Asian trading shows a possible rebound in price action. If this reversal is confirmed, then the EURUSD could possibly push higher in the near term. The short-term upside target is seen at 1.1223 indicating that the sideways range continues. The EURUSD is caught within the major range of 1.1250 and 1.1140.

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Crude Oil Rises 1.5% on the Day

Oil prices posted a strong rebound on Thursday as WTI crude oil settled at 63.26 a barrel. The reversal in price came due to the rising tensions in the Middle-East. OPEC and Russia are planning to meet this weekend to discuss security issues and to prepare the groundwork for the semi-annual OPEC meeting in Vienna next month.

Can WTI Crude Oil Maintain the Gains?

The reversal from the 60.33 level of support has seen oil prices gradually pushing higher. Following the breakout above 62.85 resistance, oil is seen retracing back to this level. As long as it holds as support, we expect further gains in the near term. The next main target to the upside comes in at 64.65. A retest of this level as resistance could, however, cap the gains in the medium term.

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Gold Retreats, Losing 0.8% on the Day

The precious metal extended declines on Thursday as investors shunned risk assets. Gold prices settled near the 1285 handle by Thursday’s close. The declines came as economic data from the US was fairly better. Building permits grew at a pace of 0.6% on the month while housing starts rose 5.7%.

 Will XAUUSD Continue to Decline?

The recent drop to the 1285 handle was as expected. Price action is currently testing this level for support. If there is a reversal at this level, then the outlook remains to the upside for gold prices. Alternately, a breakdown below the 1285 support could potentially signal the previous bearish trend resuming.forex xauusd

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About the Author
“John Benjamin Resident Analyst at Orbex. John has over 8 years of experience specializing in the currency markets, tracking the macroeconomic and geopolitical developments shaping the financial markets. John applies a mix of fundamental and technical analysis and has a special interest in inter-market analysis and global politics.” [space height="10"] At Orbex, we are dedicated to serving our clients responsibly with the latest innovations in forex tools and resources to assist you in trading. Please Director at Visit our site for more details.

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