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Forex: EUR/USD pierced 1.3500

The shared currency is accelerating its descent on Wednesday, piercing for a few moments the key support at 1.3500 as risk aversion is intensifying.

With focus on tomorrow’s ECB gathering, analyst Kristian Kerr at DailyFX commented “ With the euro having rallied more than 5 big figures since the January meeting, market participants are likely to be nervous that such aggressive strength will prompt a policy response from the ECB or at minimum dovish jawboning from Mario Draghi in the press conference that follows”.

As of writing, EUR/USD is losing 0.56% at 1.3506 with the immediate support lying at 1.3459 (low Feb5) ahead of 1.3415 (low Jan.29) and then 1.3377 (MA21d).
On the upside, a climb beyond 1.3598 (high Feb.5) would aim for 1.3620 (intraday support Feb.4) and then 1.3660 (high Feb.4).

Gold trading at $1675.21

Gold remains within the near-term 1660/1683 range, following yesterday’s rally and upside rejection at range tops. According to Slobodan Drvenica an analyst at Windsor Brokers Ltd., “A subsequent sharp reversal and price action below the broken bear-trendline and triangle resistance weakened the hourly structure, as the price holds below range mid-point that may open yesterday’s higher low at the 1666 for retest.”
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Forex Flash: Gilts target upside breakout – RBS

According to Technical Markets Strategist Dmytro Bondar at RBS, “Gilts have been testing 20-day MA, though didn’t ultimately manage to break it and stayed in the range of 115.90 – 116.75, as momentum remained neutral (the 20/5/5/3 slow stochastic is slightly oversold. However this is not a strong indication of extreme conditions and while there are no clear signals suggesting a break in either direction, a continuation of the range is expected for the time being.”
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