EUR/USD Rebounds From A 4-Week Low
The euro currency is posting a modest rebound intraday after falling to a four week low earlier on Thursday.
The rebound comes as the recent dollar gains take a pause, awaiting more news on the new stimulus talks.
Price action in the euro remains currently below the 1.2177 level. Therefore, a continuation to the upside could see this level coming in as resistance.
Only a strong breakout above this level could rekindle the upside bias. The Stochastics oscillator is currently signaling a bullish divergence in this aspect.
Therefore, the price action near 1.2177 will be critical. To the downside, a continuation below current lows could see the 1.2050 level coming into the picture next.
Sterling Rebounds As BoE Negative Rate Talk Fades
The British pound sterling is posting strong gains, recovering from the declines on Wednesday. The rebound comes following speculation that the Bank of England will not be considering negative interest rates.
This has proven to be bullish for the cable which has made a strong rebound. Price action will now be testing Wednesday's highs of 1.3701.
A breakout above this level could post further price gains in the currency pair.
To the downside, support is firmly established near 1.3624 which could hold against any pullbacks for the moment. The Stochastics oscillator is also likely to turn higher, adding to the bullish bias.
Oil Prices Consolidate Near Highs As Bullish Momentum Slows
WTI crude oil prices are trading flat having risen to highs of 53.90 intraday on Wednesday.
The declines push the price action back below the rising trend line. This could potentially see the trend line being retested from below.
The Stochastics oscillator is nearing the oversold levels and therefore could see a possible move higher once again.
However, oil prices will need to break out above the recent highs to continue higher. The next key target will be the 55.00 level.
To the downside, if the trendline acts as resistance, then a close below 52.20 is required.
Only a strong daily close below this level will open the way for a correction toward the 49.00 handle.
Gold Prices Continue To Remain Muted
The precious metal is trading subdued, in anticipation of further news on the stimulus proposal from the new Biden administration.
Price action is strongly consolidating near the 1850 handle for the moment. This could continue for a while before leading to a strong breakout.
The bias also remains mixed at the moment. To the upside, gold prices need to post a strong breakout above the 1850 handle, which will open the way to the 1911 – 1900 resistance level next.
To the downside, the 1817.80 level of support once again comes into the picture.
This market forecast is for general information only. It is not an investment advice or a solution to buy or sell securities.
Authors' opinions do not represent the ones of Orbex and its associates. Terms and Conditions and the Privacy Policy apply.
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange, you should carefully consider your investment objectives, level of experience, and risk appetite. There is a possibility that you may sustain a loss of some or all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
AUD/USD gains ground due to risk-on mood, US CPI awaited
AUD/USD remains steady with a positive sentiment despite the lower-than-expected Wage Price Index released on Wednesday by the Australian Bureau of Statistics. This index serves as an indicator of labor cost inflation. The appreciation of the Aussie Dollar could be attributed to the improved risk appetite.
USD/JPY extends its upside above 156.50 ahead of US CPI, Retail Sales data
The USD/JPY pair trades in positive territory for the fourth consecutive day near 156.55 on Wednesday during the Asian session. The uptick of the pair is bolstered by the speculation that the Federal Reserve might maintain rates higher for longer amid the elevated inflation.
Gold price trades with a mild positive bias, US CPI and PPI data loom
Gold price posts modest gains on the weaker US Dollar on Wednesday. The rising gold demand from robust over-the-counter market investments, consistent central bank purchases, and safe-haven flows amid Middle East geopolitical risk act as a tailwind for XAU/USD.
Ethereum bears attempt to take lead following increased odds for a spot ETH ETF denial
Ethereum is indicating signs of a bearish move on Tuesday as it is largely trading horizontally. Its co-founder Vitalik Buterin has also proposed a new type of gas fee structure, while the chances of the SEC approving a spot ETH ETF decrease with every passing day.
US CPI data expected to show slow progress towards 2% target
The US Consumer Price Index is set to rise 3.4% YoY in April, following the 3.5% increase in March. Annual core CPI inflation is expected to edge lower to 3.6% in April. The inflation report could influence the timing of the Fed’s policy pivot.