EURUSD Resumes Gains, But Can It Break Past 1.1000?
The single currency caught a bid as the dollar was soft. As a result, the EURUSD is rising over 0.65% intraday.
Prices remain well below the resistance area of 1.1000 level for now. Given the positioning in the Stochastics oscillator, the momentum could give out.
In this scenario, we expect the EURUSD to pullback lower once again.
But, with support firm at the 1.0885 region, the bias is slightly shifting to the upside for now.
Any gains will come only upon a successful breakout above the 1.1000 level.
GBPUSD Shifts To A Bullish Bias
The GBPUSD currency pair is up almost 1.3% intraday.
The gains follow after the technical bullish resistance which formed in the previous sessions.
This is validated with prices breaking past the technical resistance level of 1.2277.
The next upside target could be at 1.2424. However, a pullback to 1.2277 level to form technical support will further validate this view.
Expect to see some consolidation take place or the upside bias diminishing if the 1.2277 level fails.
This could potentially push the GBPUSD back to the downside.
WTI Crude Oil Breaks Above Technical Resistance
WTI Crude oil prices managed to break past the 33.66 level of resistance after a bit of consolidation on Monday.
Price action, if it continues, could see further gains coming along.
But with the volatility in crude oil currently settling lower, the gains might be slower.
For the moment, the price level of 33.66 will be critical. Gains can come only if prices remain firm above this level.
Alternatively, a break down below 33.66 could see a correction underway.
The lower target near 27.95 remains a possibility at the moment. Watch the bearish divergence forming on the Stochastics oscillator as well which adds to this view.
Gold Trades Flat As Investors Look For Direction
The precious metal is trading rather flat as the momentum is easing.
Gold prices are trading close to the 1728 level as the rising trend line is broken.
As long as XAUUSD does not rise above 1731.70, we expect the bias to remain to the downside.
The lower support area at 1717.65 remains critical in this case.
A break down below this price level will signal further declines. The next lower support is at 1672 level which will mark a strong correction to the current rally.
To the upside, XAUUSD will see the gains stalling near 1747 level which has proven to be hard to break so far.
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