29 Sep

USD Likely to Pullback After Recent Rally

September 29, 2020

By Orbex

EURUSD Attempts To Pare Losses

The euro is attempting to erase gains from last Friday in what could be a near term correction.

After losing the 1.1900 handle, the EURUSD has been steadily posting a decline.

Price action is somewhat stable, close to the 1.1600 level of support.

The current rebound could see the EURUSD attempting to test the 1.1715 handle. If resistance forms here, we expect to see price eventually breaking down past the 1.1600 level.

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Alternatively, a close above the 1.17150 level could potentially see the bullish momentum resuming, putting the EURUSD on track to test the 1.1900 level next.

GBPUSD Rises Amid Brexit Talks

The British pound sterling is trading stronger on Monday as price action managed to post a recovery.

This comes after cable-stayed flat since Wednesday last week.

The bullish follow-through after Friday’s doji candlestick pattern suggests some near term upside.

The key level for GBPUSD will be the 1.3000 handle.

A close above 1.3000 could open the way for price to rise to the 1.3035 level next.

In the medium term, we expect GBPUSD to hold steady within the 1.3000 level and the current lows near 1.2700.

Oil Prices Hold Steady Below 41

WTI crude oil prices continue to trade mixed with price action holding steady below the 41.00 level of resistance.

Monday’s price action marks the fifth session where oil prices have been trading in a range, within the high and lows from last Monday.

A breakout from this range could see the larger sideways range giving way to a stronger trend.

For the moment, watch how the price action unfolds as WTI crude oil approaches the 41.00 level.

Above this level, the 42.00 level will be the next crucial resistance level to break.

As a result, we could expect this sideways range to continue in the near term. There is also a risk that prices could fall back to the 38.83 level, given that the lower support area was not fully tested.

Gold Likely To Trade Flat For 3rd Consecutive Session

The precious metal is caught in a sideways range right after prices fell sharply last week to a two-month low.

Gold prices are currently steady with price action holding up above the 1850 level of support.

The near-term consolidation could lead the way to price making a correction to the upside.

This could see gold prices testing the 1900 -1911 region once again.

As long as resistance holds near this level, we could expect this sideways range to hold in the near term.

However, the bias will shift to the upside if gold manages to break past the 1900 threshold once again.

Meanwhile, the descending triangle pattern continues to hold for the moment, putting the downside target toward the 1750 level of support.

By Orbex


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