EURUSD On Track For A Three-Day Gain
The euro currency is on track for a three-day back to back gain. Price action is recovering sharply following the declines during the middle of last week.
For the moment, price action will be challenging last week’s highs of 1.2168. A convincing breakout above the resistance area of 1.2177 will put the bullish bias back on the table.
Currently, the 4-hour chart is also shaping up to show an inverse head and shoulders pattern. Therefore, a successful breakout above 1.2177 will push the euro currency toward 1.231 level at the very least.
This will mark a lower high comparing to the highs from January this year.
GBPUSD Maintains Its Impressive Rally
The British pound sterling maintains a strong hold on the bullish momentum with six consecutive weekly gains so far.
Price action is nearing the April 2008 highs of 1.4376. The strong uptrend could be further cemented if the cable breaks out sharply from the rising price channel.
The immediate support to the downside is near the 1.3951 level at the moment. However, with the current pace of gains, we expect prices to continue rising above the 1.4000 level.
On the daily chart as well, price action remains biased to the upside following the strong bullish reversal pattern on Thursday last week.
Crude Oil Attempts To Pare Losses
WTI crude oil prices are looking bullish with price action posting a strong recovery after the declines from Thursday and Friday last week.
For the moment, price is yet to breakout above last Thursday’s highs of 62.22. But this is essential for the commodity to maintain its bullish position.
Following the reversal in the direction on Monday, we expect the minor support near 58.85 to hold prices from declining further.
To the upside, oil prices will be battling the confluence of the horizontal resistance level and the trendline around the 60.87 region.
If price fails to close out above this level, we could see a correction down to the 57.35 level eventually.
Gold Prices Rise To A Four-Day High
The precious metal is posting strong gains on Monday, capitalizing on a weaker greenback. As a result, price action is up over 1.5% intraday and is trading near a four-day high.
Despite the current gains, XAUUSD will need to breakout above the 1817.79 level of resistance. A breakout above this level will also push price action out from the falling price channel.
This could potentially signal the end of the correction in gold prices as the upside resumes.
However, ahead of further gains, a high low within the 1817.79 – 1764.22 levels could give it more upside bias. This will potentially confirm the end of the current declines.
Above 1817.79, gold prices will challenge the 1850 levels next.
