Dollar trades softer on rising risk-on sentiment
|EUR/USD Settles Above 1.1900
The euro currency is posting strong gains as price action comfortably rose above the 1.1900 level of resistance on Wednesday.
The gains come following consolidation between the 1.1900 and 1.1800 levels over the past few days.
With prices trading above 1.1900 level, this could be tested for support in the near term.
As long as the 1.1900 level holds up, further gains could come. This would mean that the EURUSD will now be open to the 1.2000 level as the next key challenge.
But this bias could change if the euro currency falls below the 1.1900 level. It could lead to a sideways consolidation once again.
GBP/USD Trades Flat Above 1.3300
The British pound sterling is trading flat with no new highs forming after trading above the 1.3300 level.
Prices briefly tested Monday highs, just below the 1.3400 level before retreating.
We expect the cable to continue testing the 1.3300 level of support in the near term. As long as this level holds, the bias remains to the upside.
In the event that the GBPUSD gives back these gains, then we suspect some declines that could put the currency pair back into a sideways range.
WTI Crude Oil Attempts To Break Past Key Resistance
Oil prices are continuing to hold the bullish moment. Prices gained over 2% on Wednesday as WTI crude oil approached the 45.00 level of resistance.
However, to steer clear above this level, further gains are required. For the moment, we could expect to see some consolidation taking place.
Failure to breakout higher above 45.00 could signal a short term consolidation.
To the downside, the minor support level near 43.50 could be tested. Below this level, the next key support area is 41.00.
Gold Prices Close Flat Above 1800
The precious metal is gaining some support off the 200-day moving average. Price action is closing flat on the day, which could signal some near term reversal.
This would mean that gold could potentially rise to test the 1817.80 level. As long as resistance forms here, further downside can be expected.
However, if the precious metal rises above the 1817.80 level, then we could expect further gains.
This would mean that the 1850 level of support might be re-tested as a resistance level.
To the downside, the continued declines could see the 1750 level coming into the picture next.
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