USD trades soft as equities and gold rise higher
|EUR/USD Breaks Out To The Upside From Its Range
The euro is pushing higher on the day with the range finally showing signals of giving way to a trend.
Price action is clearing the upper end of the range at 1.1347 and this bullish breakout could see a continuation to the upside.
The next main level of interest is the 1.1400 handle. We expect price action to potentially stall at this level, or breakout higher.
In the event that resistance forms at 1.1400 level, then the recent breakout level near 1.1347 might act as support.
If support forms here, then we expect to see the 1.1400 handle being breached eventually.
GBP/USD Slips Below The Trend Line
The pound sterling is trading mixed on Tuesday. Following last week's rally to the 1.2643 level, the GBPUSD has failed to breakout above this level.
This has pushed prices lower threatening the rising trend line.
At the time of writing, the GBPUSD is trading below this trend line which could suggest a move to the downside.
The initial support area is at the 1.2516 level. However, there is a possibility for minor support to form near the previous swing low point of 1.2584.
Given the way the Stochastics oscillator is positioned, we could expect to see price attempting to breakout to the upside if the support holds.
WTI Crude Oil Stays Flat Near The 40 Handle
Crude oil prices are trading mixed, following last Friday's bullish close.
However, failure to breakout above the 40.00 level has kept price action subdued.
The OPEC member nations including Russia are due to meet this week. Therefore, we expect to see a strong fundamental driven breakout in the making in the near term.
To the upside, oil prices will have to break out above the 42.00 handle to confirm further gains.
Alternately, to the downside, the minor support area near 38.10 might hold up prices from posting further declines.
Gold Prices Steady Above The 1800 Handle
The precious metal is trading comfortably above the 1800 level on Monday. Price action briefly dipped to the psychological round number level to establish support.
However, we see a lower high forming near the top. If gold prices fail to make any further gains, we could expect to see a short-term correction.
Price action will no doubt test the 1800 level once again. But if gold prices lose this handle, then we expect prices to correct toward the 1779 – 1780 region where the next major support level exists.
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