Meanwhile, the lack of progress in the US-China trade negotiations also hit the markets. Equities retreated while safe havens such as the yen and gold rose on the day.

Euro Posts Modest Gains on CPI

Inflation data for the eurozone showed that consumer prices edged higher. The headline inflation rate rose 1.3% on the year, beating estimates of a 1.2% increase.

The core inflation rate also nudged higher, rising 1.1%. Meanwhile, the European Parliament confirmed the appointment of Ursula Von der Leyen as the next Chairman of the European Commission, while Christine Lagarde was formally nominated as the next ECB Chairperson.

EUR/USD Pares Losses, but Trades Flat

The currency pair recovered from the losses set earlier this week. However, price action continues to trade flat as the pair approaches the support/resistance level of 1.1250. With the new range formed between 1.1250 and 1.1188, we expect price to breakout from this range to establish further direction.

Crude Oil Falls on EIA Inventory Report

WTI Crude oil prices fell after the US. Energy Information Administration reported a higher than expected inventory. US crude oil stockpiles fell 3.12 million. This was more than the estimates of a 3.6 million decline in inventory. The data was shrugged aside as initial news reports indicated that Tehran was dropping its nuclear program, which was later denied.

WTI Breaks Below Key Support Level

The declines in oil prices continue for the third consecutive day. Price broke past the previously established support level near 57.50. While attempting to recover the losses, if resistance forms near this level, we expect oil prices to drop further. The next main support is at the 54.42 level.

Gold Rises to Fresh Six-Year High

The precious metal was once again seen rallying as price touched a new six-year high briefly at 1426 an ounce. The gains came following reports of a lack of progress on the trade talks between the US and China. The US economic data on housing was also disappointing leading to a modest risk-on sentiment.

XAU/USD Forms an Ascending Triangle

Gold prices edged higher, once again testing the previously established resistance levels near 1423. In the process, price action has formed an ascending triangle pattern. A breakout above the resistance could indicate further gains in the near term. The minimum upside is seen near the 1445 level. To the downside, if the resistance fails, we expect gold to find support off the minor rising trend line.