Euro Struggles To Breakout Above Resistance
The euro made attempts to rise above the resistance level of 1.1261 level on Monday. However, price action was trading weaker as the euro failed to breakout above the technical resistance.
For the moment, the euro is trending lower in the medium term.
We expect the declines to see a test of the lower support area near 1.1132.
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That said, there is a possibility that the euro might find minor support near the lows of 1.1171.
In the medium term, EURUSD will most likely move into a sideways range.
GBPUSD Breaks Down Below Support Level
The British pound sterling is trading slightly weaker, but declines are accelerating after prices broke down off the technical support.
The price level near 1.2344 has held up as support in previous tests. But the current breakdown off this level now puts the downside in focus.
We now expect the GBPUSD to post declines down to 1.2233 level. There could be a slight rebound off this level that might keep prices range-bound.
Crude Oil Attempts To Push Higher
Oil prices are trading bullish on Monday as prices rose over 3.5% on the day.
Price action is finding support off the rising trend line, leading to this rebound.
However, the current gains will see price challenging the technical resistance area near 40.42 – 40.18 level.
A strong breakout above this level is required in order to maintain further gains.
Failure to do so could keep prices subdued and will potentially open up the downside risks in crude oil.
Gold Holds Steady Near Previous Highs
The precious metal is trading rather flat on the day following an attempt to push higher.
However, with prices trading just below the previous highs, we expect this consolidation to result in a breakout.
The bias is slightly to the downside, following the double top pattern forming near 1774.20.
If gold prices break down below 1760, then we expect a decline back to the 1747.20 level of support.
To the upside, clearly, gold needs to make a breakout above 177420 to continue the bullish trend.