GBPUSD Attempts To Pare Losses
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Dollar slips, brushing off ISM data
Euro Trades Subdued
The euro currency is trading subdued following the volatile price action on Monday which closed almost flat.
Price continues to remain bullish but a breakout off the current levels is needed.
Price action is likely to close with an inside bar on Tuesday. This could mean that a breakout from this range could set the short term momentum in the markets.
The bias remains mixed, albeit to the upside. The common currency will need to post higher highs to confirm the continuation of the uptrend.
The British pound sterling is posting modest gains on Tuesday following the strong sell-off on Monday. But price action remains subdued in comparison to Monday’s prices.
The Stochastics oscillator remains near the oversold levels. However, this bias remains mixed.
To the downside, the support area near 1.3500 is likely to come in as support.
To the upside, for the uptrend to continue, GBPUSD will need to rise above the previous highs near 1.37.
Crude Oil Gains Over 5%
Oil prices are bullish on Tuesday, rising over 5% intraday.
The gains come on the second day of the OPEC+ meeting. Saudi Arabia, alongside other countries, opposed Russia’s proposal of raising production. The current gains in oil prices will likely push it to the psychologically important level of $50.00 and barrel.
Following this, we could expect some profit-taking to push prices back lower. The support level near 49.15 is likely to come in initially.
As long as prices hold above this level, we could expect to see a continuation higher.
If the 49.15 handle is lost, then a deeper correction could be expected toward the 47.17 level of support.
Gold Tests 1950 Once Again
The gains in the precious metal saw price rising to the 1950 level. This marks the second retest of this level since November 2020.
Previously, prices fell back right after testing this level. At the moment, the Stochastics oscillator is in the overbought levels.
This could potentially signal another correction lower. The immediate support level is near the 1911 – 1950 level for the moment.
In the event that gold prices continue to edge higher, then a higher low needs to form above 1950. Above this level, the next clear challenge will be the psychological level of $2000.
