SNB and BoE meetings coming up

The U.S. dollar was seen posting gains on Wednesday. Economic data was sparse. In the overnight trading session, New Zealand’s quarterly GDP numbers were reported. Data showed that New Zealand’s GDP advanced at a pace of 0.5% as widely expected. However, the Kiwi dollar continued to extend losses.

The economic calendar for the day will see the monetary policy meetings held by the Swiss National bank and the Bank of England. Both central banks are expected to hold their respective interest rates steady at today's meeting.

Focus will be on the BoE's meeting as investors anticipate for clues on the timing of the next rate hike. Market watchers expect the next BoE rate hike to be in August but the recent inflation and wage report has likely dented the sentiment.

The U.S. trading session is quiet with only the Philly Fed manufacturing index coming up.

EURUSD intra-day analysis

EURUSD (1.15636): The EURUSD currency pair continued to trade subdued on Wednesday. Following the outside bar the day before, price action was seen staying within the established range from the previous day. On the 4-hour chart, price action is seen hovering the near the downside breakout from the bearish flag pattern. Still, a break down below the previous lows of 1.1559 is essential to confirm the downside towards the target of 1.1394.

USDJPY intra-day analysis

USDJPY (110.59): The USDJPY currency pair posted gains, with early Asian trading session seeing the yen weakening sharply. The upside in USDJPY has sent prices to test the resistance level at 110.62. However, further gains can be confirmed only on a breakout above this resistance level. In the near term, we expect USDJPY to maintain a sideways range below this resistance level, with the bias still remaining to the downside. The major trend line is likely to act as dynamic support on the declines with the main level of support at 109.57 - 109.43 likely to hold the declines in the near term.

XAUUSD intra-day analysis

XAUUSD (1265.57): Gold prices broke down to the downside and the declines are now expected to keep the prices biased to the downside. The break down below 1274 support is expected to see gold prices extending the declines to the next main support level at 1242. In the near term, any retracements are likely to stall near the 1274 level where the recently breached support level could turn to resistance. Only a strong close above 1282 level could signal a shift in the trend.