A bluntly spoken ECB Governor Nowotny took the opportunity to put a conclusion on the recent Euro rally by explicitly stating that the ECB was clearly missing their inflation target in Thursday’s trading session. Market participants understood this comment as a signal that more stimulus measures from the ECB will be coming in the near future, and as a result the EUR experienced a hefty selloff against the USD and across most of its counterparts. If Friday’s CPI release for Europe fails to meet expectations, this may simply compliment ECB Governor Nowotny’s comments and provide a final compelling case for the ECB to provide additional stimulus measures in the near future.
The ongoing weak sentiment towards the Dollar has refused to have a positive impact on WTI which has suffered four successive days of declines this week. The latest inventory report showed another huge stockpile and will further the continual concerns regarding oversupply. On top of this, weak data from both the US and China has fueled concerns over global growth, with this further pressuring the price of WTI. This commodity remains technically bearish on the daily timeframe and with the central theme of oversupply remaining unchanged, any additional fears about a reduction in demand for oil should send prices back to the magnetic $44.00 support.
The NZDUSD is technically bullish on the daily timeframe. Prices are trading above the daily 20 SMA and the MACD has crossed to the upside. Prices have hit the 0.6850 resistance this trading week. The next relevant resistance is based at 0.7000.
Dollar weakness has instilled bullish momentum within Gold. This commodity is technically bullish on the daily timeframe. Previous resistance at 1170.0 may become dynamic support which should send prices to the next relevant resistance at 1200.0.
The NZDCHF is technically bullish on the daily timeframe. Prices are trading above the daily 20 SMA and the MACD has crossed to the upside. A breach above the 0.6500 resistance may open a path to the next relevant resistance at 0.6700. A move back below 0.6350 suggests bullish weakness.
The USDZAR is technically bearish on the daily timeframe. As long as prices can keep below the 13.250 resistance there may be an additional decline to the next relevant support at 12.600.
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