Stronger dollar pushes commodites, currencies lower
|Euro Slips As Investors Prepare For ECB Meeting Next Week
The euro currency continues its declines for the third consecutive day, as the ECB meets in a week's time.
The common currency touched down to a weekly low of 1.1789 before pulling back into the start of the European session.
The Stochastics oscillator on the 4-hour chart remains well oversold, offering a modest rebound in prices.
However, the upside might be limited to the 1.1900 level. Here, the resistance will most likely keep a lid on the gains.
This opens up the downside as EURUSD could very well retest the 1.1715 level of support.
GBP/USD Trades Below The 1.3300 Handle
The British pound sterling lost the 1.3300 level of support on Thursday. Price action remains biased to the downside.
However, the declines might find support off the dynamic resistance from the rising trend line.
To the upside, we could see some consolidation taking place near the 1.3300 level once again.
However, further gains can come only on a strong close above 1.3300 initially, followed by a close above the previous highs.
This could mean that GBPUSD might remain range-bound, back within the familiar price channel of 1.3300 and 1.3122.
WTI Crude Oil Hits A One-Month Low
The declines in oil prices continue as prices touched a one-month low at 40.20 on Thursday.
The declines come following a rebound in the US dollar. With prices trading near the 40.00 level, we could expect the sideways price action to emerge once again.
However, this is likely if oil prices manage to settle within the 40.00 and 42.00 levels.
For the moment, the retracement has pushed prices above the 40.00 handle.
The gains could see price action attempt to retest the 42.00 handle.
Gold Supported By The Rising Trend Line
The precious metal remains weak as price fell for the second day. However, the pace of declines was limited as XAUUSD is currently helped by the long term rising trend line.
With the Stochastics oscillator in the oversold level and the possibility of a hidden bearish divergence, we could expect prices to pop back higher.
But this could change if gold loses the trend line support. It will accelerate the declines in gold down to the 1911.50 level of support.
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