FxAnalysis

The German DAX fell to the €24,500 support zone on Thursday, testing a key breakout level as traders weigh geopolitical risks against fiscal stimulus optimism.

The Australian dollar pulled back sharply from 0.71 on Thursday, with 0.69 now a key support level amid central bank divergence and shifting risk sentiment.

The GBP/USD pair meets with a fresh supply following the previous day’s good two-way price swings and sticks to a negative bias through the first half of the European session on Friday.

The Euro posts moderate losses on Friday, trading at 1.1920 at the time of writing, as the US Dollar picks up amid speculation that Warsh will be the next Federal Reserve (Fed) Chairman and hopes that the government shutdown can be avoided.

Gold is seeing a deep correction early Friday, challenging bids near the $5,100 kevel, following intense volatility witnessed on Thursday.

EUR/USD comes under fresh selling pressure as the pair cooled off from overbought levels, helped along by a modest recovery in the US Dollar (USD). Even so, the broader tone for the single currency remains constructive at the start of the year.