Dollar Index likely to push higher

EURUSD Stuck Near Technical Resistance

The euro currency is looking to break out from the technical resistance range of 1.2177 and 1.2144.

However, price action remains weaker as it struggles to break out from this range. Meanwhile, the ascending triangle pattern continues to remain in play for the moment.

In the event that prices break out above 1.2177, then we would see a rise toward 1.2300 at the very least.

The stochastics oscillator currently is moving down from the overbought levels and therefore signals that price action could potentially push lower.

However, this is subject to price is breaking the minor trend line that we see for the moment.

Or breakdown below this trendline will see the euro currency once again attempting to slide towards the technical support near 1.2050.

Price action in the British pound sterling is on track to close with muted gains on Monday. This comes as the GBPUSD attempted to push higher intraday above the 1.3700 level.

However, prices pulled back lower to briefly test the medium-term trendline. From a daily chart perspective, a break of this trendline could possibly see prices once again sliding towards the 1.3500 level of support.

The stochastics oscillator on the four-hour chart is currently pushing lower suggesting that the momentum might be heading to the downside.

As a result, we expect the cable to continue trading somewhat mixed over the coming few sessions.

The test of 1.3611 will be crucial as a breakdown below this level will no doubt open the way for the GBPUSD to test the 1.3500 level.

Oil Prices Remain Mixed

WTI crude oil prices continue to maintain a mixed bias with prices giving back the intraday gains made.

As a result, oil prices are once again trading near the lower end of the sideways range at 51.87.

Given that this consolidation comes after the recent rise in prices, we could expect to see prices snapping lower.

The recent rebound of this lower end of the range so the stochastics oscillator rising from the oversold levels.

However, at the time of writing, the stochastics oscillator is once again likely to signal or move to the townsite.

If oil prices lose the 51.87 technical support, then we expect a decline towards the 49.00 handle eventually. This will also see a confluence with the longer term trend line.

Gold Prices Confined To Friday’s Range

The precious metal is trading subdued with much of price action staying within the range from last Friday.

As a result, price action is seen consolidating near the 1850 level of support multiple times. This consolidation could potentially give way for the markets to break out in the near term.

To the downside, the 1817.79 level of technical support remains within scope. Given the multiple rejections near this level recently, we expect the support level to hold.

Meanwhile, to the upside or close above the recent highs near 1873 to 1874 level could see prices eventually rising toward the 1911.50 technical resistance.