Forex markets today continue to remain in a rather narrow range, ignoring strong movements in the stock markets. The Yen is generally low, but there are no signs of a breakout so far. Likewise, the dollar is also trying to find a clear direction, remaining the second weakest in a week after the Yen. The Australian dollar is currently more resilient than the pound sterling. Markets may need real inspiration from Fed Chairman Jerome Powell at the end of the week to take the next step.
Technically, gold and crude oil may be in the spotlight today. Gold had been rejected by the 4-hour resistance zone earlier, confirming a short-term downtrend. The breakout of 1911.43 will resume the fall from 2015.66, as the third branch of the consolidation pattern from 2075.18 to 1862.55.
WTI now expects resistance at 43.38 following the oil inventories report. A break below will resume stronger bounces of the USD/CAD pair.
All Eyes on Anticipated FED’s Powell Speech
Market participants remained cautious throughout the day, taking a wait-and-see attitude ahead of the speech by US Federal Reserve Chief Powell at a symposium in Jackson Hole this Thursday. Market negotiations suggest that he is likely to develop a new monetary policy framework based on average inflation targeting (AIT).
The dollar as a whole was weak against major competitors, despite upbeat durable goods orders. However, the pairs remained within their last ranges. EUR/USD closed almost unchanged for the third day in a row, holding within the range defined last Friday.
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