Soft Inflation Data Keeps USD Pressured

February 11, 2021

EURUSD Rises To A Two-Week High

The euro currency continues to push higher, rising for the third consecutive day, to a two-week high.

The gains, however, are slowing as price moves closer to the 1.2144 – 1.2177 level of resistance. We also continue to see the hidden bearish divergence on the chart, which could suggest a pullback.

To the downside, price is likely to stall near the 1.2050 level of support for the moment. However, a close below this level could see the Feb 5 lows of 1.1952 come into the picture.

If the current bullish moment continues, then the euro currency will need to break out above 1.2177 to confirm further upside.

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GBPUSD Pushes Higher But Gives Back Gains

The British pound sterling continues to rise higher, marking a new high of 1.3866 intraday. But price action is pulling back after testing this level.

The Stochastics oscillator is firmly in the overbought levels supporting the upside bias. For the moment, the downside remains limited until we see a lower high forming.

Given the current pace of gains, the GBPUSD is seen testing the support area of 1.3790.

A strong close on a weekly basis above this level is needed to confirm further upside.

For the moment, the untested support level near 1.3759 will be the likely downside target in case of a correction.

Oil Price Grinds Higher To A New 13-Month High

WTI crude oil prices continue to maintain a strong bullish moment.

Price action rose to fresh highs of 58.73. This makes price action likely to test the unfilled gap from January 20 last year at 59.47

However, with price now trading below the trend line, this could act as a potential resistance for price action.

To the downside, the support level at 57.35 is already tested albeit only slightly.

Therefore, any declines could see this level coming under a firm re-test. Only a strong close below 57.35 will confirm a move down to the 53.77 level of support.

Gold Prices Rejected Near 1850

The precious metal is struggling to breakout above 1850 as price action was firmly rejected near this level intraday.

Overall, gold prices remain trading subdued compared to the gains made in the previous sessions.

We expect the precious metal to maintain a sideways range between the 1850 resistance and 1817.80 level of support in the near term.

The Stochastics oscillator is also starting to move a bit down from the overbought levels currently. This will likely mark an end to a three-day winning streak in gold.

By Orbex