USD fights back from a five-week low

Euro Trades Subdued But Supported By The Trend-Line ✕

The euro currency is trading rather mixed, a day after prices almost closed flat on Tuesday.

Overall, the long-term trendline on the daily chart is supportive of prices. Therefore, we could see price action attempt to push higher.

The 50-day moving average is also close and could come in as dynamic support. For the near term though, the EURUSD currency pair will need to close convincingly above the resistance area of 1.2177 and 1.2144.

This resistance area is proving hard to break out in the near term. Therefore, there is a very good chance that the EURUSD might remain in a sideways range for now.

To the downside, the 1.2050 level will hold the currency pair from posting further declines.

The British pound sterling rose to a fresh three-year high at 1.4140. But prices were rejected intraday with the currency pair likely to close bearish or flat.

Given that this pattern comes near the top end of the rally, it could potentially signal the start of a correction in the GBPUSD.

The cable has not made any decent pullbacks so far. Therefore, a close below Tuesday’s low of 1.4055 could spell trouble.

For the moment, prices might test the support area near 1.3950. This would mark a short-term correction in price action.

The Stochastics has also moved out from the overbought levels but could signal a reversal once again.

Crude Oil Rises Over 3%, Inching Closer To A Two-Year High ✕

Oil prices managed to shrug off the uncertainty of the past few days with price action once again surging.

On an intraday basis, spot crude oil prices rose over 3% in what is likely to be a strong recovery. The gains come after oil prices closed bearish last week.

However, at the time of writing, crude oil has managed to pare last week losses to rise higher.

On the intraday charts, oil prices are yet to close fully above the previous highs of 62.97. But given the bullish momentum, we could expect to see further gains.

The only downside scenario here is to see oil prices pulling back. This would mark a failure near the short-term trendline and could open the way to the downside.

The support near 60.87 remains critical under such circumstances.

Gold Prices Likely To Close Bearish For A Second Day ✕

The precious metal is failing to capitalize on the support level it established near the 1764 handle. Prices are falling for the second day, albeit the pace of declines is limited in comparison.

To the upside, the reversal comes just a few points below the 1817.80 level. Given that this level was already established as resistance, we expect prices to hold between the two levels for the moment.

On the weekly chart, we have the double bottom pattern that has formed around the 1764 handle.

Therefore, a breakout above 1817.80 is needed to keep the bullish bias alive.

A close above 1817.80 will open the way for gold prices to challenge the 1850 handle next.