EUR Pips Up, Crude Oil Drops, GBP in Recovery Mode, AUD Low

Wednesday brings more hot news on the EUR, crude oil, GBP and AUD. After a churning Tuesday, here’s what charts show and what to be watchful about.

EUR Pips Up

Following the ECB Conference in Frankfurt and President Draghi’s speech and the optimistic German economic data showing Germany’s robust economic growth, EUR pips up against its USD counterpart. The single currency ticked higher this morning at $1.17905 after gaining approximately 1.1% overnight and reaching 2-1/2-week highs – $1.18049.

Struggling with a surging euro, the US dollar index, which measures the buck’s strength against a trade-weighted basket of six major currencies, lost about 0.7% overnight, standing at 93.870.

Today EURUSD hovers above the area of a close 1.18086, moving up from 1.17904 open and a low of 1.17844. However, keep an eye on today’s estimated strength and resistance levels.

Crude Oil Drops

US crude oil futures started low, moving 1.1% down at $55.05 a barrel, following a 4-day downtrend. US crude hovers above $55.16 per barrel.

Brent crude oil dropped 1.3%, going down to $61.51 per barrel in the morning and revolving around $61.61 per barrel.

GBP in Recovery Mode

Before the release of the UK employment data and after Governor Carney’s taking the stage yesterday, GBP attempts to move up against the USD, closer to 1.315 levels on Wednesday morning. Yet, is this sustainable? Only time and trade ahead will tell.

However, GBP bulls can be happy that the Sterling broke away from its lows, yet let us not keep our hopes too high as GBPUSD remains offered, which reflects a somewhat cautious sentiment ahead of the UK jobs data release.

The cable started the day at 1.131571 and may hit a high of 1.131871.

AUD Low

The AUD lost 0.7% against the American dollar, going back to a 4-month low at $0.75759. Wednesday’s economic data release weighted down on the Aussie, with wages coming in lower than expected. AUDUSD traded around 0.75883 in the morning and is likely to move even lower.