The Euro, Gold, and Oil Markets Await Key Fed Decisions

The Euro, Gold, and Oil markets are at important crossroads as they await key decisions from the Federal Reserve.

Euro's Prospects of Correction Ahead of Federal Reserve Event

The EUR/USD is at a crucial juncture on the charts and a significant correction could be on the cards if the market's expectations are incorrect. On the other hand, a move to test 1.0920 could also be seen. A break of the bull cycle's trendline support and a hawkish outcome from the Fed could lead to a price plunge and a potential test down to 1.0650/00.

Gold Tests Resistance Around $1,950 as Private Sector Hires Fewer Workers

In the gold market, the price continues to test resistance around $1,950 as the private sector hired fewer workers in January according to the latest data from payrolls processing company ADP. The market remains in a solid uptrend but may not see much reaction to the disappointing headline economic data. Investors and traders are hesitant to take a major position in gold as they await the Federal Reserve's monetary policy decision. The weaker-than-expected employment data could give the Fed some room to soften its aggressive stance.

Oil Under Pressure with Large Crude and Product Builds

Oil is under pressure as U.S. crude inventories increased 13 million barrels, according to API data. WTI was trading up $0.88 to $78.78 per barrel, while Brent crude was trading down $0.47 at $84.43. U.S. crude oil production remains at 12.2 million bpd for the third week in a row.