By Orbex
The US dollar was lifted by the durable goods orders report on Thursday. Data showed that durable goods orders rose 2.7% on the month beating estimates strongly.
The USD held steady early into Friday’s trading session. The first quarter GDP report is due to come out later today. Economists forecast that the first quarter GDP growth could rise 2.5%, which is a better print compared to initial concerns of a sharp slowdown in the economy.
The common currency slipped to fresh lows on Thursday. The declines came amid a rebound in the US dollar boosted by strong economic data. In contrast, the eurozone economy is still struggling, adding to the downside. The common currency has been falling for the third consecutive session.
The currency pair is trading close to a multi-year support line near the 1.1120 region. The intraday charts signal a potential rebound in price. However, the currency needs to break past 1.1140 in order to confirm the upside. The next main target to the upside comes in at 1.1226 where resistance could be established.
The precious metal was seen rising for two consecutive sessions. The rebound in price coincides with the test of the 200-day moving average. The gains come despite the US economic data showing a rebound in activity. However, the broader central bank outlook remains dovish leading to the upside in gold prices.
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Although price has rebounded, the upside correction is yet to see the test of the 1285 handle. This price level remains key as resistance is quite likely to be established in the area between 1285 – 1290. A reversal off this level, of course, could signal the end of the correction as gold prices could begin to extend lower.
WTI crude oil prices closed lower on Thursday. The declines came despite concerns about the quality of oil coming out of Russia. Poland, Germany and the Czech Republic announced that they would stop purchasing crude oil from Russia, leading to a shut down in one of the pipelines. This is estimated to affect about 1% of global supply.
The WTI crude oil extended the declines, trading close to the support level of 64.55. A retest of this level will mark a test of support. This could keep oil prices supported to the upside. The overall trend is likely to turn flat from this point in case of an upside bounce. The range established between 66.00 – 64.55 is likely to hold for the near term.
By Orbex