Euro Gets A Boost From A Softer USD
The euro currency is posting some modest gains on Monday.
Economic data remains sparse, but the dollar pulled back, giving a boost to the euro.
EURUSD maintains its upside bias after rebounding off the support level near 1.0792.
We continue to watch the potential head and shoulders pattern that could still emerge.
However, if price rises above the previous pivot highs of 1.0887, then this bearish pattern will be invalid.
This could potentially shift the bias to the upside, although the currency pair is still not out of its sideways range.
Pound Sterling Rebounds Off 1.2100 Technical Support
The pound sterling is posting modest gains after prices briefly slipped below the 1.2100 psychological level of support.
The downside bias is towards 1.1950 and this little recovery could see a retest of 1.2277.
This level previously held on technical support before breaking down lower. Therefore, we could expect GBPUSD to recover back to this level.
If resistance is formed at 1.2277, we could see further downside in GBPUSD.
However, the initial target will be at 1.2100 followed by a move to 1.1950 eventually.
WTI Crude Oil Resumes Bullish Trend
WTI crude oil prices are up by over 9% intraday.
The commodity is back to the bullish trend after price consolidated over the past few sessions.
The resulting breakout above 27.95 has now opened the way for WTI crude oil to test the 33.66 level of resistance.
We could expect to see prices recovering off this level initially. But, price action will be confined to levels between 33.66 and 27.95.
Expect to see further downside only after a strong close below the lower support.
XAU/USD Gives Back Gains After Reaching Eight-Year High
Gold prices are retreating just after the intraday action saw prices rising to an eight-year high of 1764.92.
The declines come just after the precious metal rose past the previous highs from mid-April this year.
The strong retracement back could see XAUUSD falling to the lower support level at 1717.65.
We could expect some consolidation along these levels in the near term.
However, if prices break past the 1717.65 support, expect a stronger retracement lower. The downside target is at 1671.95.
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