EURUSD Heading Lower
The euro currency attempted to rise higher but gave back the intraday gains. The rebound off the 1.2177 level of support was met with resistance from the trendline.
With prices heading lower, the previous support level near 1.2177 comes under pressure.
The Stochastics oscillator is also signaling a hidden bearish divergence. This could mean that price action will drift lower if the support breaks.
Below 1.2177, the next key area of support will be the 1.2050 level.
Given that this support area was not firmly tested before, we expect to see a possible test of this level.
GBPUSD Gives Back Gains As Brexit Euphoria Fades
The British pound sterling is down over 0.6% on Monday. The declines come following last week’s rebound above the 1.3506 level of support.
But as the trade deal euphoria fades, prices are drifting lower. As a result, the cable is likely to continue pushing lower.
The next key level of support comes in at 1.3210. There is a possibility that the GBPUSD could establish minor support ahead of the decline to 1.3210.
To the upside, a rebound could see the 1.3506 level being tested once again.
If resistance forms here, then we expect to see a possible confirmation of prices heading lower.
WTI Crude Oil Could Likely Form A Top
Oil prices maintained their bullish continuation with prices rising in early Monday trading. However, after rising to intraday highs of 48.94, the commodity gave back the gains, forming a lower high.
If prices break down below the pivot lows of 47.76, then this will confirm that a top is in place. The next support level of interest comes near the 47.17 level.
Below this minor support, oil prices could be on track to post further declines.
The support area near 45.26 will come into the picture.
The Stochastics oscillator is overbought at the moment, validating the short term move lower.
Gold Prices Trade Flat Near Previous Swing Highs
The precious metal is on track to close flat on the day for Monday. This comes as prices attempted to rise intraday.
However, as the momentum fizzled out, gold prices form a lower high. This could potentially trigger a short term decline.
For the moment, the initial support level near 1859.50 comes into the picture. As long as this swing low from December 22 holds, there is scope for a rebound.
But a failure at this level will open the way for further declines. The 1850 level of support comes into the picture.
Despite the short term declines, gold prices are likely to remain supported at or near the 1850 level for the moment.
