03 Sep

USD gains for a second day

September 3, 2020

By Orbex

EURUSD Loses 1.1900 Handle On A Strong Dollar

The euro currency is posting losses and is down over 0.70% intraday.

The declines come on the back of the stronger US dollar which is trading stronger for the second day.

The declines in the euro accelerated after price lost the 1.1900 handle. This comes just a day before the common currency briefly traded near 1.2000 before giving back the gains.

Despite the current declines, EURUSD still remains biased to the upside.

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The correction we see now could likely stall near the 1.1800 level.

But if the euro loses this level, then we could see prices testing the 1.1750 level of support next.

GBPUSD Holds On To Support At 1.3300

The British pound sterling is extending declines for the second consecutive day. The sterling was trading above 1.3400 earlier this week but has given back the gains.

At the time of writing, GBPUSD is trading near the 1.3300 level. This is the first time that the currency pair is testing this level for support in recent months.

If the support holds, the upside bias could remain as a potential reversal will keep the bullish bets alive.

However, if GBPUSD loses the 1.3300 handle, then we could see price action entering the previous sideways range of trading between 1.3300 and 1.3122.

Oil Prices Back To The 42.00 Handle

WTI Crude oil prices made modest attempts to rise intraday. However, the gains were erased quickly.

Price action turned bearish into the mid-US trading session. Oil prices fell to the 42.00 handle. Just a few weeks ago this is the level that was briefly tested for support.

The current gains come as oil prices failed to break out of the 43.50 ceiling.

For the moment, prices are trading well below the 42.00 handle.

However, if oil prices do not recover, we could see another sideways range form within the 42.00 and the 41.00 handle.

Gold Gives Up Gains Amid A Strong Dollar

The precious metal gave back the gains made over the past few sessions as price failed to hold on to the support level near 1967.

This led to gold prices falling further. The lower high formation and the current price action could indicate further downside in the near term.

However, the Stochastics oscillator is a bit oversold and this could see a modest rebound in the price action.

Still, gold prices will need to break past the 1967 handle once again, which could be difficult under the circumstances.

For the moment, the declines could stall as price approaches the previous lows near 1910.

By Orbex


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