EU Covid-19 Recovery Package Lifts Euro Higher

The common currency posted a fresh four-month high on Tuesday.

The gains were driven by the news that the EU leaders agreed to a new EU wide grants package.

This, alongside a weaker dollar, contributed to gains in the EURUSD.

The pair is now into its third consecutive session of gains.

Prices reversed direction after hitting the trend line and bouncing off the support.

Given the current bullish momentum, the EURUSD is within sight of testing the 1.1500 handle next.

The pound sterling is on track for a bullish continuation.

After clearing the key price level near 1.2643, GBPUSD is likely to continue the uptrend.

This puts cable within reach of testing the 1.2813 level in the near term.

Any short term corrections will, however, push GBPUSD back to the 1.2643 level of support.

As long as this level holds, GBPUSD is poised to the upside.

We could expect prices to retreat after testing the 1.2813 level on profit-taking.

Overall, we expect the currency pair to maintain its range within the said levels for the moment.

Oil prices are bullish with price action gaining over 3% on Tuesday.

The current gains came after oil prices managed to break out to the upside from the consolidation.

Price action is also trading above the 42.00 handle. As long as oil prices settle above this level, we expect further gains in the near term.

However, if crude oil loses the 42.00 level, then we might expect a correction back to the 41.00 level.

Establishing support here will renew the bullish bets for oil prices with a potential to break past the 42.00 eventually.

The precious metal rose to a fresh nine-year high after consolidating over the past few sessions.

Price touched the 1841 levels intraday after breaking past the 1817.80 level of support.

Further upside could see the precious metal eyeing the 1850 price level next.

To the downside, the corrections could be limited to the 1817.80 level.

We expect this level to hold keeping the upside bias intact.

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