Euro rebounds off support, as expected
|The euro currency’s gradual declines pushed the currency down to the support area of 1.0787 into Friday’s close.
As widely expected, price quickly bounced off this support level to close on a bullish session in the final hours on Friday last week.
The Stochastics oscillator remains well in the oversold level. This could signal a turnaround in the near term.
EURUSD will likely remain caught within the range of 1.1030 and the current support of 1.0787 for the near term.
Sterling breaks to the downside from its range
The pound sterling is looking to break out from its range as price slipped from the lower range on Friday.
The declines below 1.2260 level could indicate a move lower.
However, the intensity in the breakout remains weak, putting to question the downside bias.
With the Stochastics oscillator likely to turn higher, we suspect this could be a fake breakout lower.
Expect GBPUSD to move back into the range, unless prices drop further below from 1.2260.
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WTI maintains strong gains for a second day
WTI crude oil prices are rising higher for a second day. Prices rose over 16% into Friday’s close, led by the optimism of an OPEC supply cut.
At the time of writing, WTI crude oil prices are trading near the resistance level of 28.00.
If this level cannot be cleared, we expect prices to drift back into range.
However, the floor at 22.00 looks to be solidly in place for the moment. This will mean that oil prices have likely formed a bottom.
XAU/USD drifts slightly higher
The precious metal has become somewhat weaker after the previous volatility seen in the weeks gone by.
Price action is gradually drifting higher, in an attempt to test the previous highs.
The main level of interest is 1632. A breakout above this level could see further gains come by.
However, in the short term, we expect a drop back to the lower support of 1594.
Watch XAUUSD for a possibility of an inverse head and shoulders pattern formation that could signal further upside gains.
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