Dollar strengthens slightly on year end flows
|EUR/USD Drops Into The Year-End
The euro currency was down over 0.63% into the yearly close.
The declines come amid thin trading and the US dollar posting a modest rebound. The euro currency has been consolidating near the rising trend line over the past few days.
While price action was making modestly higher highs, the pace of gains was gradual. The slowing momentum has led to a decline off the trendline consolidation.
If the current declines continue, the euro could be looking to test the 1.2177 level of support.
However, with the Stochastics oscillator somewhat oversold we may expect to see a modest rebound in prices.
GBP/USD Settles Comfortably Higher
The British pound sterling is maintaining a bullish hold with prices posting a gradual rally since 29 December.
The pace of gains, however, is likely to stall given the Doji candlestick patterns near the current levels. A bearish follow-through is required in order to confirm the downside. This could potentially see the GBPUSD falling to the 1.3500 level of support.
As long as this support holds, the GBPUSD could be looking to make a rebound once again.
With the threat of a hard Brexit now out of the way, the GBPUSD is likely to focus back on the fundamentals.
The Stochastics oscillator remains overbought at the moment, indicating a possible correction in the near term.
WTI Crude Oil Consolidates Near Current Highs
Oil prices are trading flat ever since prices touched intraday highs of 49.29 on 21 December.
Since then, oil prices pulled back and are trading in a sideways range. For the moment, this sideways range is likely to continue.
However, the OPEC+ meeting today could offer something for oil investors. Depending on the outcome, oil prices could see a possible move in either direction.
To the downside, support at 47.17 remains. As long as this support holds, oil prices are likely to maintain the upside bias.
To the upside, a close above the 21 December highs of 49.29 is required in order to confirm further gains.
Will Gold Breakout Higher?
The precious metal was seen consolidating near the 1900 level. Price action previously tested this level before pulling back recently.
In the process, we have a potential ascending triangle pattern emerging. If the 1900 level of resistance breaks, then we expect to see further gains coming.
A breakout above 1900 will validate the bullish ascending triangle. It puts the next minimum target in price action toward 1922 at the very least.
But this would also put gold prices above the 1900 level which has proven hard to break as both a resistance and support level previously.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.