USD turns weaker after rising to a one-month high

EURUSD Retraces To the 1.2144 Price Level ✕

The euro currency is posting a strong retracement following the decline close to the 1.2050 level of technical support.

The current rebound has pushed price action to test a minor support level near 1.2144. With the stochastics oscillator currently showing a hidden bearish divergence, price action will either have to break out above 1.2177 resistance or it is likely that we could see a continuation to the downside.

This could mean that the technical support near 1.2050 will once again come under pressure. If prices break below this level, then the EURUSD could be looking towards posting their correction down to 1.1900 level.

To the upside, price action will need to post or strong gain about 1.2177 in order to keep the upside bias intact.

The British pound sterling continues its strong reversal price action as prices our trading currently above the 1.3611 level.

This was the low from the double top pattern that had formed previously. If we see a strong close above 1.3611, then it would potentially keep the GBPUSD within a sideways range.

This would mean that the cable will be trading back within the 1.3701 and 1.3611 levels.

For the moment, however, the stochastics oscillator still remains somewhat weak as far as the bullish bias is concerned.

As a result, a reversal near 1.3611 could potentially reiterate the downside buyers. This would then open the way for the cable to test the 1.3506 level of support.

WTI Crude Oil Rebounds. But Can It Post Further Gains? ✕

WTI crude oil prices are posting a strong recovery with price action attempting to retest the previously formed highs.

However, the reversal looks to be a bit fragile at the moment. As a result, if prices fail to break out above the trend line once again and above the previous highs near 53.80, then we could expect to see some downside correction taking place.

For the moment, the oil prices remain somewhat mixed in their bias.

Price action on the daily chart shows a bullish reversal following the Doji pattern which comes after the strong declines from Monday.

However, from here on, oil prices will need to close above the previous highs in order to continue to post further gains.

Gold Stays Muted Despite A Weaker USD

The precious metal is trading subdued, unmoved by the weaker US dollar. As a result, prices remain rangebound within the 1850 and 1818 levels for the moment.

The stochastics oscillator also remains rather flat suggesting the sideways movement is likely to continue on for a bit further.

Only a strong breakout within this range could result in a potential direction being established in the near term.

The bias also remains mixed at this moment. On the daily chart, following the strong rejection below 1817.79, prices have managed to close bullish.

However, the resistance level near 1850 will prove to be critical at this point.

The stochastics on the daily chart timeframe remains near the oversold level, therefore giving support to the upside buyers if there is a breakout above 1850.