USD Ends May on a Weaker Note

June 1, 2020

By Orbex

EURUSD Retreats From 1.1130 Level

The euro rose to 1.1144, marking a fresh two-month high on Friday before retreating.

The pullback coincides with the resistance level near the 1.1130 level. At the moment, price action is supported from the median line.

But a breakdown below this will signal a correction. We expect the downside in EURUSD to send the currency pair back to the 1.1000 level.

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Establishing support back at this level will potentially bolster the case for further gains.

Alternatively, a breakout above 1.1130 could trigger stronger gains.

GBPUSD Maintains A Steady Hold On The Upside

The GBPUSD currency pair is near a two-week high.

After clearing the price level near 1.2277, price action is having an upside bias.

The next target is at 1.2424, marking a strong resistance level from earlier attempts.

As a result, GBPUSD might settle into a sideways range. A close above 1.2424 will, of course, mark a full recovery from the slump which began in early May this year.

The declines to the downside are limited for now, as long as 1.2277 holds up.

WTI Crude Oil Pushes Above 33.66

WTI Crude oil prices rose over 4% on Friday and closed above the 33.66 level.

However, price action remains a bit doubtful at the moment.

This is, of course, unless we see a strong rally above this handle.

The next main target level is near the 40s for crude oil. Price action in the commodity remains somewhat mixed which opens the risks of a correction lower.

The Stochastics oscillator is also somewhat bearish that suggests the possibility of a pullback.

XAUUSD Makes Gains, But Upside Remains Weak

Gold prices rose over 0.8% on Friday but prices stalled near previous highs of 1733.0.

While this is a minor resistance level, the gains could push price action closer to the next main resistance level of 1747.00.

Only a convincing breakout above this level will trigger further rallies in the precious metal.

To the downside, there is scope of a pullback as the 1717 handle remains within sight.

A breakdown off this level might trigger a move lower to the 1696 level that was only briefly tested.

By Orbex