USD and gold pullback while equities push higher
|EUR/USD Consolidating Near Trend Line And Support
The euro currency is holding somewhat steady after the support area near the 1.1750 handle looks to be strong for the moment.
The trend line is, however, holding up as resistance level. The decline to this region suggests strong support is holding up, given the rebound from earlier last week.
However, unless the currency pair manages to breakout higher, we could expect a descending triangle pattern to emerge.
This will increase the bearish odds for EURUSD. Below the 1.1750 handle, the next main support is near the 1.1600 region next.
GBP/USD Retesting The Resistance Level
The British pound sterling managed to make some very modest gains on Tuesday.
Price action was steadily rising only for the gains to be capped near the 1.3122 level once again. This could potentially see the pound sterling pushing back lower.
The lower end of the range is near the 1.3000 level of support. We could expect this support to hold.
If prices consolidate within the said levels, then it potentially raises the upside bias, given the bullish momentum.
However, we could expect to see a strong correction if GBPUSD gives way near the 1.3000 level.
The next main support area is near the 1.2750 handle.
Will Oil Prices Push Higher?
WTI crude oil managed to break out of the 42.00 ceiling on late Monday. However, following a brief rally above the 42.00 level, the commodity is seen pulling back.
We expect the 42.00 price level to be tested once again. There is also a possibility for WTI crude oil prices to consolidate back inside the range.
However, the upside breakout above 42.00 could suggest further gains. But a lot will depend on the fundamentals which need to be supportive of oil prices.
Following the recent high above 43.00, we expect this level to be tested in the short term.
The main target remains the 50.00 price level next.
Gold Slips To A Two-Week Low
The precious metal is posting its first proper correction in nearly three months.
Gold is down over 3.5% intraday after it broke out from the rising price channel.
The support area near the 1967 handle has also given way. The current declines could see prices extending lower.
However, for the upside to prevail, the precious metal will have to break out above the 1967 level.
Above here, the next key resistance is near the 2026 price point.
For the moment, it looks to be that the gold rally is taking a pause.
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.