USD steadies on prospects of new stimulus talks

EURUSD Rebounds From A 4-Week Low

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The euro currency is posting a modest rebound intraday after falling to a four week low earlier on Thursday.

The rebound comes as the recent dollar gains take a pause, awaiting more news on the new stimulus talks.

Price action in the euro remains currently below the 1.2177 level. Therefore, a continuation to the upside could see this level coming in as resistance.

Only a strong breakout above this level could rekindle the upside bias. The Stochastics oscillator is currently signaling a bullish divergence in this aspect.

Therefore, the price action near 1.2177 will be critical. To the downside, a continuation below current lows could see the 1.2050 level coming into the picture next.

The British pound sterling is posting strong gains, recovering from the declines on Wednesday. The rebound comes following speculation that the Bank of England will not be considering negative interest rates.

This has proven to be bullish for the cable which has made a strong rebound. Price action will now be testing Wednesday’s highs of 1.3701.

A breakout above this level could post further price gains in the currency pair.

To the downside, support is firmly established near 1.3624 which could hold against any pullbacks for the moment. The Stochastics oscillator is also likely to turn higher, adding to the bullish bias.

Oil Prices Consolidate Near Highs As Bullish Momentum Slows ✕

WTI crude oil prices are trading flat having risen to highs of 53.90 intraday on Wednesday.

The declines push the price action back below the rising trend line. This could potentially see the trend line being retested from below.

The Stochastics oscillator is nearing the oversold levels and therefore could see a possible move higher once again.

However, oil prices will need to break out above the recent highs to continue higher. The next key target will be the 55.00 level.

To the downside, if the trendline acts as resistance, then a close below 52.20 is required.

Only a strong daily close below this level will open the way for a correction toward the 49.00 handle.

Gold Prices Continue To Remain Muted ✕

The precious metal is trading subdued, in anticipation of further news on the stimulus proposal from the new Biden administration.

Price action is strongly consolidating near the 1850 handle for the moment. This could continue for a while before leading to a strong breakout.

The bias also remains mixed at the moment. To the upside, gold prices need to post a strong breakout above the 1850 handle, which will open the way to the 1911 – 1900 resistance level next.

To the downside, the 1817.80 level of support once again comes into the picture.