Risk on sentiment gathers momentum

By Orbex

EURUSD Likely To Test 1.1715

The common currency is trading somewhat flat on Monday.

Price action on the 4-hour chart shows a lower high forming. At the same time, we also have the hidden bearish divergence.

From here on, EURUSD will most likely slide to the 1.1715 level of support. It is also possible that price action will remain supported above this level in the near term.

Upside bias gains prominence, only if the common currency can rise above the recent swing high point near 1.1850.

GBPUSD Establishes Resistance At 1.3122

The British pound sterling briefly tested the price level near 1.3122.

Price action was rejected, and this resulted in a strong bearish candlestick.

The current declines could see GBPUSD testing the lower support at the 1.3000 region.

We also have a rising trend line that could act as dynamic support in the short term.

However, for now, GBPUSD could settle into the range between 1.3122 and 1.3000.

WTI Crude Oil Inches Higher

WTI Crude oil rose slightly higher on Monday amid storms in the Gulf of Mexico.

The storm is threatening a complete shutdown of oil production units in the region.

Oil prices rose to intraday highs of 42.85 before pulling back.

Any declines could see prices stalling back near the 42.00 level.

The new sideways range between 42.00 and 43.00 is likely to form in the near term.

But overall, oil prices continue to remain directionless.

Gold Prices Weaker As Equities Hit Record Highs

The precious metal is taking it easy amid a strong risk-on rally that is pushing equity markets to record highs.

The risk-on sentiment comes on optimism on the developments for the treatment of the virus.

Price action is supported near the minor price level of 1927. A close below this level could signal a move down to 1880.90 which marks the mid-August lows.

Price action could see a rebound off this level which could put it into a sideways range.

By Orbex