USD rises to a one-month high as Yellen Testifies

EURUSD Reversing Just Off 1.2050 Technical Support ✕

The euro currency posted a steady decline as price action reversed just a few pips of the 1.2050 level of support. The declines come on the back of a strengthening US dollar.

Speculation that the new Treasury Secretary, Janet Yellen will not be pursuing a weaker dollar policy has pushed the greenback higher. This has led to the euro posting a steady decline over the week.

Despite the rebound just above the 1.2050 level, the bias remains to the upside. Any gains are likely to stall near the 1.2177 level at best. A reversal near this level will confirm a further continuation lower.

On the other hand, we could expect the EURUSD to firmly test the current support near 1.2050.

The British pound sterling extended declines but managed to post a reversal above the 1.3050 level of technical support. The rebound comes as prices fell through the 1.3611 level of support late last week.

The declines open the way for the cable to retest the support level near the 1.3506 region. However, at the current reversal, we could expect the cable to retest the 1.3611 level once again.

Establishing resistance at this level will likely confirm further downside. But this could change if the GBPUSD manages to close back above the 1.3611 level.

To the downside, the declines could stall near the 1.3506 level of support keeping prices to move in a sideways range.

Oil Prices Attempt A Modest Rebound ✕

WTI crude oil prices posted a rebound following the declines from last week. Prices got a boost early on Monday following stronger GDP numbers out of China.

However, the current retracement remains somewhat subdued. Unless we see a breakout above the previous highs of 53.74, we could expect a continuation lower.

This will mark a correction in crude oil prices which has been in a steady trend for a while.

The immediate downside target for oil prices is the 49.00 area. Establishing support there could potentially mark a correction into the longer-term uptrend that oil prices are in currently.

Gold Rebounds Off 1817 Support Level ✕

The precious metal touched down below 1817 intraday to a one-month low. However, prices quickly reversed losses to rise above this technical support.

For the moment, prices remain above the 1817 level and could see some upside. But only a close above the 1850 level can confirm this.

In such an event, gold prices are likely to extend gains further. This will open the way for the precious metal to test the next key resistance level near 1911.50.

To the downside, only a strong close below the 1817 level will confirm further downside in prices.