EURUSD Drops Into The Year-End
The euro currency was down over 0.63% into the yearly close.
The declines come amid thin trading and the US dollar posting a modest rebound. The euro currency has been consolidating near the rising trend line over the past few days.
While price action was making modestly higher highs, the pace of gains was gradual. The slowing momentum has led to a decline off the trendline consolidation.
If the current declines continue, the euro could be looking to test the 1.2177 level of support.
However, with the Stochastics oscillator somewhat oversold we may expect to see a modest rebound in prices.
The British pound sterling is maintaining a bullish hold with prices posting a gradual rally since 29 December.
The pace of gains, however, is likely to stall given the Doji candlestick patterns near the current levels. A bearish follow-through is required in order to confirm the downside. This could potentially see the GBPUSD falling to the 1.3500 level of support.
As long as this support holds, the GBPUSD could be looking to make a rebound once again.
With the threat of a hard Brexit now out of the way, the GBPUSD is likely to focus back on the fundamentals.
The Stochastics oscillator remains overbought at the moment, indicating a possible correction in the near term.
WTI Crude Oil Consolidates Near Current Highs
Oil prices are trading flat ever since prices touched intraday highs of 49.29 on 21 December.
Since then, oil prices pulled back and are trading in a sideways range. For the moment, this sideways range is likely to continue.
However, the OPEC+ meeting today could offer something for oil investors. Depending on the outcome, oil prices could see a possible move in either direction.
To the downside, support at 47.17 remains. As long as this support holds, oil prices are likely to maintain the upside bias.
To the upside, a close above the 21 December highs of 49.29 is required in order to confirm further gains.
Will Gold Breakout Higher?
The precious metal was seen consolidating near the 1900 level. Price action previously tested this level before pulling back recently.
In the process, we have a potential ascending triangle pattern emerging. If the 1900 level of resistance breaks, then we expect to see further gains coming.
A breakout above 1900 will validate the bullish ascending triangle. It puts the next minimum target in price action toward 1922 at the very least.
But this would also put gold prices above the 1900 level which has proven hard to break as both a resistance and support level previously.
