USD recovers after retail sales and industrial production shock
|EUR/USD Price Action Looking Increasingly Weaker
The euro currency continues its consolidation as price action was somewhat flat into Friday’s close.
However, the intraday gains to highs near 1.0895 and the subsequent decline could mark the right shoulder of the head and shoulders pattern forming.
The neckline support at 1.0792 remains in play for the moment.
A breakout below this level will, however, validate the bearish pattern.
The initial downside target is at 1.0736 followed by 1.0702.
But, if price fails to breakdown lower, expect the consolidation below 1.1000 to continue.
GBP/USD Slips to A Two-Month Low
The British pound fell to a two-month low into Friday’s close.
The declines came about after the currency failed to hold on to the support level near 1.2277.
The descending triangle pattern forming as a result, is validated after the breakout below the support area.
The downside target for GBPUSD is now at 1.1950.
There is scope for further declines below this level at 1.1472 which marks the lows from March this year.
Alternatively, prices could settle into a new range if the initial target at 1.1950 can stall the declines.
But, ahead of this move, expect a retracement back to 1.2277 as prices retest the breached support level for resistance.
WTI Crude Oil Breaks Out Higher After Consolidation
WTI Crude oil prices finally saw an upside breakout on Friday as the commodity rose to a two-month high.
Price rose over 6.5% on Friday, settling at 29.79 to the barrel.
The resistance level at 28.00 was strong and kept price confined below this level earlier.
But, the fundamental news from Friday saw investors turning bullish on the commodity.
Despite the breakout above 28.00, oil prices are still at risk of a decline.
Unless support is firmly established at the 28.00, the gains could quickly disappear. The next upside target for WTI crude oil is at the 33.00 handle.
Gold’s Rally Completes the Ascending Triangle Pattern
The precious metal rose just under 1% on Friday, settling at 1743.94.
But, this was not before rising to intraday highs of 1751.42. This also marks the upside target of the ascending triangle pattern.
Gold prices were consolidating below the technical resistance level of 1717.65.
Following the higher lows, price action eventually broke past the resistance level.
At 1743.94, gold prices are now testing the April 14 highs.
If there is no further breakout, expect a pullback. The previous price level at 1717.65 could be tested for support.
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