EUR/USD remained on the defensive on Wednesday, extending its weekly offered bias and testing the key 1.1600 support level. The pair’s weakness comes amid lingering political uncertainty in France and an ongoing US government shutdown, with little sign of compromise in sight.
Spot Gold surpassed the $4,050 threshold on Wednesday, establishing yet another record high. The bright metal kept rallying on the back of global political woes. The United States (US) government shutdown entered its eighth day, without signs of ending anytime soon.
The Australian dollar (AUD) spent Wednesday flipping between small gains and losses against the US dollar (USD), with AUD/USD hovering near 0.6580 after dipping to multi-day lows around 0.6550 earlier in the session.
The EUR/USD pair fell towards the 1.1600 level during European trading hours on Wednesday, as demand for the US Dollar (USD) continues on the back of a dismal market mood.
The USD/JPY pair prolongs its weekly uptrend for the third consecutive day and climbs to its highest level since February 17 on Wednesday amid a combination of supporting factors.
EUR/USD remains on the back foot in the European session on Wednesday and trades below 1.1650 after losing about 0.5% on Tuesday. The technical outlook suggests that sellers are likely to retain control in the near term.