EUR/USD is trading at 1.08500, 0.03% down since previous day close. EUR/USD is down for the second consecutive day, with the downside remaining cushioned. Bets for a June Fed rate cut weigh on the USD and support the pair. Traders are now focusing on Fed Chair Powell’s testimony before the ECB meeting on Thursday. Traders are hesitant to place aggressive USD bearish bets and prefer to wait for more clarity about the Federal Reserve’s rate-cut path. The ECB meeting and Nonfarm Payrolls report may help limit any corrective decline for the EUR/USD pair. The pairs is in a rejection zone and expected slight selling today.

US100 is trading at 17982.03, 0.03% down since previous day close. Wall Street’s three major indexes retreated more than 1% on Tuesday, with weakness in mega cap growth companies like Apple Inc and the chip sector weighing most on the Nasdaq. Economic data showed slower U.S. services industry growth in February, with employment declining while new orders grew to a six-month high. The technology sell-off on Tuesday was seen as profit taking for a sector that had recently rallied after rising 56% in 2023. As seen in the chart, the index is in a downside rally, if breaches the level then, downside is expected.

XAU/USD is trading at 2125.61, 0.08% down since previous day close. Gold price has fallen due to profit-taking and repositioning trade ahead of Fed Chair Jerome Powell’s congressional testimony. Rising bets for a June Fed rate cut undermine the USD and lend support to the metal. The release of the ADP report on private-sector employment and JOLTS Job Openings data might contribute to meaningful trading opportunities around the Gold price. The Relative Strength Index (RSI) on the daily chart is already flashing overstretched conditions, indicating caution for bullish traders. As seen in the chart, gold is hovering around the resistance zone, hence a breakout is expected, if breaches the level.