AUDUSD
The Australian Dollar (AUD) exhibits a sideways movement with a bias toward continuing its losing streak. The Australia's S&P/ASX 200 Index mirrors gains seen on Wall Street overnight, despite upbeat US Inflation data. The US Consumer Price Index (CPI) YoY and MoM rose by 3.2% and 0.4%, respectively, in February.
As of Wednesday, the Australian Dollar remains positioned above the psychological support of 0.6600. A breach below this level may propel the AUD/USD pair towards the vicinity of the nine-day Exponential Moving Average (EMA) at 0.6584. This level coincides with the 38.2% Fibonacci retracement level of 0.6581. Traders should closely monitor this support level, as a break below might trigger further downside momentum.
Entry Suggestion for AUDUSD: Traders may consider short positions if the AUD/USD breaks below the psychological support of 0.6600. The target for this short position could be set around the nine-day EMA at 0.6584, with a further downside potential towards the 38.2% Fibonacci retracement level of 0.6581.
WTI
WTI prices rose in Asian trade on Wednesday, buoyed by industry data showing an unexpected draw in U.S. inventories. Additionally, OPEC stuck to its forecast of strong demand growth in the coming years. Brent oil futures expiring in May rose 0.5% to $82.28 a barrel, while West Texas Intermediate (WTI) crude futures rose 0.5% to $77.62 a barrel.
The unexpected draw in U.S. inventories provides support for oil prices. Traders should keep an eye on OPEC's statements and any developments regarding demand growth, as they could impact future price movements.
Entry Suggestion for WTI: Traders may consider long positions if WTI breaks above the recent high at $77.62. The target for this long position could be set around the next psychological level or resistance, possibly $80.00. However, it is essential to monitor OPEC statements and global demand trends for a comprehensive understanding of the market.
XAUUSD
XAUUSD edged further away from a record peak on Tuesday, breaking its nine straight sessions of gains. This dip comes ahead of critical U.S. inflation data that could influence potential interest rate cuts by the Federal Reserve. Spot gold fell 0.3% to $2,176.79 per ounce, trading below its record high of $2,194.99.
As gold retreats, it is crucial for traders to monitor the upcoming U.S. inflation data, as it could have a significant impact on gold prices. The anticipation of possible interest rate cuts by the Federal Reserve adds an element of uncertainty to the market.
Entry Suggestion for XAUUSD: Traders may consider potential long positions if gold finds support above key levels, such as the recent low or a significant psychological support level. Conversely, short positions could be considered if gold breaks below critical support, with the next support level to watch being the recent low or any identified technical support level.
Overall Market Sentiment:
The global market sentiment remains cautious, with varying influences on different assets. The AUDUSD is influenced by economic data, and a breach below psychological support could lead to further downside. WTI oil prices are supported by unexpected draw in U.S. inventories and OPEC's optimistic demand forecast. Gold, on the other hand, faces a retreat as traders await crucial U.S. inflation data.
Disclaimer
Derivative investments involve significant risks that may result in the loss of your invested capital. You are advised to carefully read and study the legality of the company, products, and trading rules before deciding to invest your money. Be responsible and accountable in your trading.
RISK WARNING IN TRADING
Transactions via margin involve leverage mechanisms, have high risks, and may not be suitable for all investors. THERE IS NO GUARANTEE OF PROFIT on your investment, so be cautious of those who promise profits in trading. It's recommended not to use funds if you're not ready to incur losses. Before deciding to trade, make sure you understand the risks involved and also consider your experience.
Paraphrasing text from Investing, Kitco and FX Street all rights reserved by the original author.
