27 Oct

Dollar Firms on Rising Coronavirus Cases in the US

October 27, 2020

By Orbex

EURUSD Dips Closer Back To 1.1800

The common currency is trading weaker on Monday, largely due to a slightly higher greenback.

Price action continues to ease lower with intraday lows trading just a few pips off the 1.1800 handle.

Continued declines could see the 1.1800 level of support being tested once again.

However, the lower high following the recent rebound off 1.1800 signals caution.

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A breakdown below 1.1800 could see price action pushing lower and potentially shifting the short term trend.

GBPUSD Holds The Range Between 1.3122 & 1.3000

The British pound sterling drifted lower on Monday as intraday prices briefly tested the 1.3000 handle.

However, price action remains volatile around this level.

The Stochastics oscillator is oversold and could signal a short term move to the upside.

Meanwhile, price action is on track to close bearish for the third consecutive daily session. Still, prices remain well within the range from last Wednesday.

As a result, only a bearish close below 1.2944 could spell further declines.

For the moment, the bias remains mixed.

WTI Crude Oil Loses The 38.83 Floor Again

Oil prices are trading bearish, as the sentiment shifts to the downside.

The rising number of coronavirus cases in the US once again dampens the outlook for demand.

As a result, oil prices slipped below the 38.83 floor that held up previously.

The breakdown below this level is, however, gradual. This could mean that price could once again creep back higher to continue with the sideways trend.

If the current bearish momentum continues, oil prices could be testing the 2nd October lows near 37.

Gold Trades Muted Despite Bearish Market Sentiment

The precious metal is attempting to make some recovery, but price action remains broadly muted.

This comes even as the US equity markets are trading in the red on Monday.

With no clear progress on the stimulus bill and the dollar firming, gold prices are in check.

For the moment, the consolidation near the 1900 – 1911.50 level continues.

To the downside, a soft support is near the 1890 handle.

A close below 1890 could signal a shift for further declines in price action. This could potentially open the way for a move to the 1850 handle next.

By Orbex


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