Euro Firms Up After ECB Meeting
The euro currency regains its bullish momentum on the day. The gains came after the common currency posted declines for four consecutive days.
This led prices to fall and test the trend line which offered dynamic support. Following this, the euro made a quick rebound and is attempting to rise higher.
For the moment, price action will need to challenge the previous lows near 1.2150.
If the euro can break past this level, then we expect to see new highs forming.
However, if the common currency reverses near this level we expect a possible correction down to the 1.1900 level.
GBPUSD To Remain Volatile Into Sunday Brexit Meeting
The GBPUSD currency pair continues to trade volatile, in reaction to the Brexit trade talks.
Both the EU and the UK have until Sunday to finalize the deals. We expect the GBPUSD will therefore continue trading mixed into the weekend.
For the moment, consolidation is taking place near the 1.3300 level of support.
If price action closes firmly below this level, then further downside is possible. The bias remains completely mixed at this point.
To the upside, GBPUSD will need to retest the 1.348 – 1-3500 level. Only a strong close above this level could confirm further gains.
WTI Crude Oil Attempts To Log New Highs
Oil prices are trading bullish following days of consolidation near the 45.00 level.
The gains are driven by news about two oilfields in Iraq under attack.
For the moment, with the support level at 45.00 being establishing oil prices have room to rise.
Furthermore, the next key challenge will be the psychologically important 50.00 level. However, the rise to this level is likely to be gradual.
Oil prices will need to establish support near the upper levels to continue maintaining the bullish momentum.
Gold Prices Continue To Remain Trading Flat
The precious metal did not react much to the news of the ECB’s stimulus expansion. As a result, gold prices remain fairly settled above the 1850 levels for the moment.
As long as this support holds, we can expect price action to trade flat.
To the upside, gains will be very likely capped near the 1900 -1911 levels.
To the downside, if the support level gives way, then gold prices could be looking at steeper declines.
Prices will likely fall back to the next key support area near 1817.80.
