Slow start to the week with China and US markets closed

EURUSD Recovers From A Three-Day Low ✕

The euro currency touched a three-day low on Friday at 1.2080 before recovering. Price action is subdued for the past three sessions with a lower high currently forming.

This comes after price slipped to a three-month low at 1.1951 on February 5th. The downside bias is starting to build up.

The common currency will need to rise above the recent swing high of 1.2187 in order for the upside bias to hold.

Failure to do so could potentially open the way for further declines, especially if the swing low of 1.1951 gives way.

For the moment, the support area near 1.2050 will be critical to the downside. The Stochastics oscillator is moving up and could signal another test to the resistance area near 1.2144 – 1.2177.

The British pound sterling made a sharp recovery with price action on Friday posting a strong rebound.

The gains put the GBPUSD back near the previous highs at 1.3866. But with the Stochastics oscillator signaling a lower high, we could see a pullback.

The support level near 1.3759 remains in scope to the downside. As long as the cable holds gains above this level, there is room for further gains.

But a close below this level could potentially see a larger correction taking place.

For the moment, the uptrend remains intact with price making consistently higher lows.

Oil Advances To A New Eleven-Month High ✕

WTI Crude oil prices resumed the bullish momentum following three days of subdued trading. Prices settled at 59.55 on Friday, marking a new 11-month high.

The rebound comes after oil prices briefly fell to the support area near 57.35. This potentially cements the 57.35 level as a strong support area in case of any downside.

Despite the gains, oil prices are now nearing a multi-year resistance area between the 65.5 and 61.5 levels.

Price action has on previous occasions failed to break past this level.

Therefore, unless there is a strong momentum led breakout, we could see price action consolidating in this resistance area.

Gold Prices Find Support Near 1817.89 ✕

The declines in the precious metal stalled after prices once again tested the 1817.89 level of support. A retest of this level, alongside the Stochastics oscillator attempting to move out from the oversold levels, could keep prices to the upside for the moment.

This will mean that gold prices will continue to maintain a sideways range between 1850 and 1817.89 levels in the near term.

On the daily charts, gold prices closed flat following the losses from the previous day.

Therefore, if price action turns bearish today, we could expect to see the previous lows at 1784.81 from 4th February coming under test once again.

To the upside, price action needs to post a strong close above the 10th of February highs of 1855.30 for any signs of further gains.