11 Aug

USD holding on to gains from last Friday

August 11, 2020

By Orbex

Euro Continues To Extend Declines

The common currency is trading weaker on Monday’s open, extending on the declines from last Friday. This comes as price failed to breach the previous two-year highs.

The dollar strength is also adding to the current weakness in EURUSD. Price action is trading near the 1.1750 level of support.

From the Stochastics oscillator, there is a possibility that EURUSD might hold on to this support.

A rebound off this level could see another attempt to the upside.

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But in case the euro slips below the 1.1750 handle, then we could expect a move toward the 1.1600 level of support next.

GBPUSD Likely To Settle Inside The Range

The British pound sterling is also extending losses from last Friday. Just after price made another attempt to close above 1.3122, GBPUSD dropped lower.

For now, price action is likely supported near the 1.3000 level. We expect some ranging price action to extend within these levels.

Only a breakout from the range will determine the near term direction. GBPUSD could be poised to breakout higher given the bullish momentum,

A strong close above 1.3122 is required with follow-through to post a new high. The next main target is 1.3200.

WTI Crude Oil Falls Back Into Consolidation

Oil prices have been somewhat volatile over the past few sessions.

After trading strongly above the 42.00 level, oil prices gave way, paring gains. As a result, WTI crude oil is now trading within the 42.00 and 41.00 levels.

A breakout from this range needs to be convincing in order to maintain the trend.

While the bias remains to the upside, we could expect this sideways action to prevail.

To the downside, below the 41.00 handle, the previous lows near 39.00 might act as support.

To the upside, 43.00 forms the key resistance level.

Gold Retreats From All-Time Highs

The precious metal is trading soft on Monday right after prices touched a new all-time high last Friday.

The pace of declines is, however, limited. This means that the upside is still likely to prevail.

On the 4-hour chart, we see that price action is supported by the lower end of the rising price channel.

A rebound off this line will need to see gold prices making higher highs.

Failure to post new gains could potentially put the precious metal at risk of a correction.

Immediate support is near the 1967 handle if the psychological support area near 2000 gives way.

By Orbex

 


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