EURUSD Subdued Amid Thin Trading

The euro was trading subdued, with price action once again attempting to retest the resistance level near 1.2144.

Price action in the EURUSD is somewhat flat with the US markets closed on account of the president’s day holiday today.

The short term trend appears to be flat for the moment unless the common currency is able to break out above the resistance area between 1.2144 and 1.2177.

Meanwhile, the stochastics oscillator is posting a lower high. This could suggest a short-term correction to the downside.

The support level near 1.2050 is likely to remain the downside target for the moment.

GBPUSD Surges Past 1.3900

The British pound Sterling continues to surge ahead with price action rising above 1.3900.

So far, GBPUSD has been posting gains for nearly five consecutive weeks.

A continuation to the upside could see price action rising towards the 1.4400 level. This would mark the highest level since mid-2016.

But the current pace of gains has seen no meaningful pullback just as yet. Therefore, the lack of any support to the downside is likely to open the downside risk.

The recent swing high near 1.3867 is likely to act as support. But if the GBPUSD loses this handle, we expect a correction down to 1.3759 next.

Oil Prices Rally On Cold Weather

Oil prices opened on a bullish note in the Asian trading session rising to a new 13 month high.

The gains came as the cold winter has fueled demand for the fossil fuel.

Price rallied to a new high of 60.75 before giving back some of the intraday gains. However, towards the late European trading session, oil prices were seen giving back some of these gains.

If oil prices continue to pull back, then we might get to see prices covering the gap from Monday’s open. To the upside, the next main resistance level is near 61.35.

The current rally in the oil prices also comes as the US dollar has been trading weaker over the past few weeks.

Gold Price Confined To Friday’s Range

The precious metal is trading subdued with price action firmly stuck within Friday’s range.

With both the Asian and US markets closed, trading in the precious metal is slow. Price action is back near the support level of 1817 region.

For the moment, the support level seems to be holding up which could provide a short-term boost to the upside. The resistance level near 1850.00 will likely once again act as resistance keeping a lid on any further gains.

However, watch the stochastics oscillator which is likely to signal a shift in the momentum.

In the event that gold prices lose the 1817 support, we could expect price action toward the 4^th February lows at 1784.79.