USD weaker after a two-day gain

Euro Attempts To Pare Losses ✕

The euro currency is making a solid recovery, in a bid to recoup the losses from Wednesday.

Price action is posting a reversal after it broke out from the long term daily trendline for the second time.

However, the current pace of gains coincides with likely resistance from the trendline and the 50-day moving average.

If the euro fails to close above Wednesday’s highs of 1.2107, then we might expect to see a continuation lower.

For the moment, the support level near 1.2050 might help to stall further declines in the currency pair.

But a daily close once again below this level will confirm further downside.

The British pound sterling posted a strong reversal snapping a two-day losing streak. Price action was bullish as it broke past the previous highs near 1.3950.

On an intraday basis, the GBPUSD rose to highs of 1.3985 before giving back some of the gains.

Further upside is likely to continue as the GBPUSD approaches the key 1.4000 round number level.

But given the current set up of the Stochastics oscillator, the bullish momentum might be losing steam.

For the moment, the line in the sand is the Tuesday high of 1.3950. A daily close below this level could keep either prices moving sideways or a drop to Wednesday’s lows of 1.3829.

Crude Oil Down Over One Percent ✕

Oil prices are down over one percent on Thursday. The declines come after the commodity rose to intraday highs of 62.22 before giving back the gains.

The overall bias in crude oil remains to the upside. Therefore, unless there is strong evidence of a correction, price action is likely to remain bullish.

For the moment, the immediate trendline will be key to watch. A break down below this trendline could potentially accelerate short term declines.

The main support level is near the 57.35 level. A close below 60.87 could potentially see the short term correction taking place.

However, if oil prices manage to reverse the current gains, we could expect to see further upside in the near term.

Gold Prices Steady Above 1764 ✕

The precious metal is trading flat on Thursday following the sharp declines from the day before. Price action has not yet tested the 30 November lows of 1764.22.

For the moment, we expect gold prices to consolidate between 1817.80 and 1764.22 levels. A breakout below 1764.22 could however extend declines down to the next key level near 1750.

On a weekly basis, prices are consistently posting lower lows.

However, the support level around the 1764 region is holding up. A weekly close below this level could open the way for further downside in the precious metal.