EURUSD Fails To Breakout Above Resistance At 1.1132
The common currency made attempts to rise past the 1.1132 price level on Monday.
However, the gains were quickly erased as the currency was pushed lower.
EURUSD is likely to confirm the resistance at 1.1132. This opens the downside back to the 1.1000 level.
But, establishing support here could potentially pave the way for further gains in the medium-term outlook.
For the moment, the outlook is to the downside but watch for any minor reversals that could quickly form into new support levels.
This will keep the medium-term upside bias in view. In the descent to the 1.1000 level, a lower high will validate the correction.
GBPUSD Pulls Back After Briefly Hitting Resistance At 1.2424
The GBPUSD currency pair is making steady advances after prices found support near 1.2277.
The gains saw the British pound aiming for the 1.2424 level. Although the pair managed to rise to this level briefly, it has pulled back.
We expect sellers to keep a lid on the currency from posting further gains.
This could mean that GBPUSD will drift lower, albeit supported near 1.2277.
In the near term, watch for minor support to form near 1.2343.
A reversal off this level could potentially suggest a breakout above 1.2424.
WTI Crude Oil Reverses Gains After Rising Above 35.50
Oil prices rose to a two-month high on Monday, briefly rising above 35.50. But prices quickly gave up the gains.
The retracement will likely see support forming near the 33.66 level. A reversal off this level will support the upside bias.
Oil prices need to follow through by posting a higher high. Else, this could potentially keep price action subdued but supported above the 35.50 level.
There is of course the risk of a move lower.
A close below 33.66 could open the downside risk for a move towards the 27.95 level.
Given that support hasn’t been tested at this level, the 27.95 remains a prime target.
XAUUSD Higher At The Open, But Fails To Build Up Momentum
Gold prices opened higher on Monday, but price action has failed to make any major gains.
We expect to see a flat close which could potentially suggest the downside building up. This also coincides with the lower high that is currently forming.
In the near term, the lower support at 1717.65 might be able to stall the precious metal from declining further.
This potentially puts the gold price to move into a sideways range, unless there is a strong breakout lower.