By Orbex
The euro is up over 0.75% on the day on Monday. The gains came steadily during the course of the day.
The currency pair is attempting to rise to a three day high, but a lot will depend on how prices close towards the end.
For the moment, the EURUSD will be struggling near the resistance level of 1.1256. A breakout above this level could potentially send the common currency higher.
However, if the EURUSD fails near this technical resistance, we expect the recent declines to resume.
Of course, a lot will depend on whether price can break past the previous lows at 1.1170 in order for a move to the lower support area at 1.1132.
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The British pound sterling is up around 0.83% intraday.
This comes after prices briefly slipped below the support level near 1.2368.
A quick turnaround from this support level is pushing prices higher. At the current pace, the GBPUSD will likely rise to test the technical level of 1.2516.
A breakout above this level will likely see further gains coming in the currency pair. Following this, we then see the next resistance level near 1.2646 being tested.
In the near term, the currency pair might settle into a sideways range. We expect price action to consolidate within 1.2516 and 1.2368 level in case of a failure to breakout above the technical resistance.
Oil prices are back near the key technical resistance level of 40.00.
Following the test of this level on Friday, prices pulled back lower.
However, since the Asian session, oil prices have been trading rather flat near 40.00.
A breakout above this level will open the way for oil prices to test new highs. But given the lack of any fundamentals to give the bullish push, we expect price action to trade flat near 40.00.
This also potentially opens the risk for oil prices to break down lower. There is a good chance that WTI crude oil might slip back to the 37.67 level in order to establish support more firmly.
The precious metal gapped higher at the open today in an attempt to break out from the confines of the current highs.
However, after rising to intraday highs of 1762.96, price action is pulling back sharply. This could potentially result in a doji candlestick pattern.
The gains remain limited despite gold prices breaking past the upper end of the range of 1747. Unless support is established at this level, we do not expect to see any strong gains coming its way.
In the event of a breakdown below 1747, we expect the downside to come under pressure, potentially exposing gold to further declines.
By Orbex
