Yesterday, the dollar posted steep gains. This was largely caused by a local rebound which occurred after the single European currency approached the upper boundary of the range in which it had been stuck for almost a week.
Considering an inverse correlation between the dollar and other trading instruments, a rise in the US currency inevitably affected oil prices that plunged to the level of 84 dollars per barrel. Brent crude oil futures accelerated the pace of their downward movement after breaking through the 85.50 mark. As a result, the quote came close to a two-week low, and its downside momentum remained strong. The volume of short positions is expected to increase further after the price fixes below the 83.50 level at least on the four-hour chart. Otherwise, a slowdown in the downward move around the 84 mark followed by a rebound cannot be ruled out.
Obviously, all markets are awaiting the upcoming meetings of key central banks. As for the foreign exchange market, the single European currency has approached the lower boundary of its range. Therefore, the euro may well gain value today, while other assets are likely to follow suit. Against this background, oil is expected to return to the area of 86 dollars per barrel.
Meanwhile, gold fell below $1,925 per ounce. Thus, the yellow metal broke below the lower boundary of the range limited by the levels of 1,925 to 1,950 dollars per ounce, in which it had traded for more than a week. However, given possible changes in the foreign exchange market, the most likely scenario for gold implies a return to the range followed by a move towards the level of $1,950 per ounce.
Alternatively, a downward correction will continue if the price fixes below the 1,910 mark on the four-hour chart. Notably, the uptrend remains intact, and the current downward movement does not exclude a subsequent rise in quotes.
The Russian currency unexpectedly lost ground, following other currencies and financial assets. This could be due to its prolonged sideways move, and market participants ran out of patience. Besides, such price behavior could be attributed to growing uncertainty ahead of the US central bank’s meeting to be held tomorrow. After all, market sentiment has recently changed dramatically. Judging by the leading Western media reports, investors are now waiting for signals confirming an imminent easing of monetary policy by the European Central Bank, and not the Fed. Of course, such shifts in market mood have a severe impact on quotes. Nevertheless, major currency pairs will most likely head towards the upper boundaries of their ranges today. Еhe ruble will probably follow suit. In this case, the greenback will come under pressure and go down to the level of 69 rubles.

00:00 Introduction
00:18 Brent
01:07 Defining benchmark for oil prices
01:36 Gold
02:26 USD/RUB
03:29 Conclusion

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