EUR/USD continued to sink as the DXY US Dollar Index reclaimed strength, weighing on several currency crosses and commodities. Resistance proved very strong during the most recent Euro to Dollar exchange rate advance. It did, albeit narrowly, find support near the 1.1300 level. At the same time, AUD/USD traded with mixed price action as it hovered around 0.6360, failing to hold above recent peaks in spite of optimism.
On Wednesday, both Gold prices reacted quite negatively, with Gold slipping below the symbolic threshold of $3,300 per troy ounce. The rare metal’s second straight month of declines come amid a general correction from an overbought market. More media reports are indicating that the Trump administration is considering cutting tariffs on Chinese imports. Considering Gold’s position as a safe-haven asset, these advances have intensified market reactions.
The independence of the Federal Reserve has not been in doubt for long. Consequently, the US Dollar surged, affecting both EUR/USD and AUD/USD. The US-China tech and trade conflict is unfolding, further complicating the picture. As it turns out, this is not affecting just the Euro-Dollar exchange rate, but the Australian Dollar as well.
The EUR/USD pair has generally been in a bear trend, and would be downward trending under these market conditions. Traders have identified some modest support around 1.1300 which could act as an important gauge for the pair’s direction moving forward. While the Greenback resumes its bullish attempt across the markets, each trader is especially interested in noticing any change in the Euro’s treasury trading rate.
AUD/USD bulls have an uphill battle on their hands as they try to break above the 200-day Simple Moving Average (SMA). After failing at or around recent peaks, the Australian Dollar is exposed to a US Dollar gain which is coming on strong. Market analysts predict that without a visible step ahead of this major technical indicator, additional upward movement will be hard to come by.
Gold’s recent performance has been tied to general economic uncertainty and how it responds to geopolitical factors. According to multiple reports, the Trump administration is looking to cut some of the recently enacted tariffs on Chinese imports. Until very recently, this news was transformed market sentiment drastically. This situation, combined with an uncertain global economic landscape, could lead Gold’s allure to wane, forcing traders to rethink their strategies.
Along with the changing market dynamics, traders are using more sophisticated order types to adapt and thrive in these conditions. Market participants are already using terms such as “Limit Order,” “Fill or Kill” and “Good Til Canceled (GTC). They embrace these ideas to gain a competitive edge to futureproof their trading strategies with the everchanging landscape.
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