Euro Rises To A Fresh Four-Month High Before Retreating

The euro currency opened on a bullish note, from the optimism on the ongoing EU talks on fiscal stimulus. This helped the currency pair to rise to a fresh four-year high of 1.1467.

However, following this brief surge, prices pulled back sharply. The currency pair might remain somewhat volatile until full details emerge from the meeting.

For now, the euro remains supported by the 1.1400 level. But a close below this level could accelerate the declines down to 1.1347.

The second rising trend line is also likely to act as dynamic support, keeping prices supported for the moment.

GBPUSD Settles Into A Range

The British pound sterling failed to build upon the double bottom pattern from the last price.

While this bullish pattern is not yet invalidated, prices are trading flat.

GBPUSD is stuck within the range of 1.2643 and 1.2516 levels for the moment. Only a strong breakout above 1.2643 will confirm further upside in the cable.

But given the Stochastics oscillator showing signs of a bearish move, we might expect to see a close lower.

A downside breakout from the range might put GBPUSD at risk of erasing the gains from the previous few weeks.

Crude Oil Extends Declines For Third Session

Oil prices are trading lower for the third consecutive session. The declines come following last Wednesday’s brief rise to the 41.00 handle.

Following this, price action has been trading weaker. For the moment, there is no fundamental news that can drive prices.

As a result, we could expect to see oil prices exhibiting low volatility. The current declines can be stalled with the minor trend line which could be tested.

A break down below this trend line might push WTI crude oil to the 10th July lows of 38.80.

To the upside, we may not see any gains unless the 41.00 handle is cleared.

Gold Tests Previous Highs

The precious metal is building upon a bullish momentum from last Friday. This has led gold to test the previous nine-year high of 1817.79.

However, prices remain muted following the initial retest. A strong breakout above this level is needed to confirm the upside in gold.

However, we might expect to see a pullback in the short term. The price area near 1800 might be at risk of being tested for support once again.

Overall, gold prices continue with the sideways consolidation near the highs.

We might begin to see price giving way to a potential breakout eventually from this range.