Euro Continues To Drift Lower
The euro currency is trading rather flat although the overall bias is to the downside.
Price fell to a three-day low before recovering from the lows near 1.1816.
On the 4-hour chart, the bullish reversal following the Doji pattern could signal some near term gains.
However, we expect any gains to stall near 1.1850 level in the near term. This could potentially cap the gains while keeping a downside bias in the euro currency.
To the downside, we expect the 1.1800 level to be tested in the near term in such a scenario.
GBP/USD Breaks The Trend Line
The British pound sterling is trading weaker on the day following the break of the rising trend line.
This could now potentially accelerate the declines lower to the 1.3122 level of support.
But the Stochastics oscillator is currently oversold which could signal a rebound in prices.
Any upside gains will be likely stalling near the 1.3300 level of resistance which has held up so far.
Overall, the GBPUSD currency pair continues to remain in a sideways range between the 1.3300 and 1.3122 levels.
Oil Prices Give Back Gains
WTI Crude oil prices are trading weaker, giving back some of the gains from Wednesday.
Price action remains supported above the 41.00 level for the moment. However, as the momentum continues to point to the downside, we could expect to see declines if the support breaks.
This will potentially open the way for oil prices to slip back to the 38.83 level of support again.
Given that the support level here has not been tested firmly, we could expect a pullback within the larger uptrend since early November.
To the upside, it is likely to see oil prices making gains in the near term.
Gold Prices On Track For A Three-Day Losing Streak
The precious metal is trading lower as price action is on track for a three-day losing streak.
The declines come following the Doji pattern that emerged on the daily chart on Monday.
The continuation lower could see prices testing the 1850 level of support more firmly. This could potentially stall the declines for the moment.
However, if price breaks down below the 1850 handle, then we expect to see room for further correction.
To the upside, any rebound will stall near the 1900 level of resistance.
This market forecast is for general information only. It is not an investment advice or a solution to buy or sell securities.
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