By Orbex
Euro Rises To Test 1.1400 Ahead Of ECB Meeting
The euro is trading about 0.5% higher on Tuesday. The gains have pushed the common currency to briefly rise above the 1.1400 level intraday.
A daily close above this level will confirm potential gains to come in the near term. However, given the ECB meeting due this Thursday, the euro might settle below the 1.1400 level in the short term.
If price fails to breakout above 1.1400 handle, we could expect to see some short term declines.
The initial support comes in at 1.1347 followed by 1.1261 which could keep a lid on the common currency from posting further declines.
GBPUSD Drops To Support On Weak GDP
Cable is trading weaker on Tuesday, although it’s quite likely that prices might close flat.
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The pound sterling is trading weaker right after price rallied to a three week high.
Following another feeble attempt to break past the resistance area near 1.2643, the GBPUSD retreated.
Price action is now holding on to the support area near 1.2516 as expected.
A strong recovery off this support level will see the GBPUSD once again challenging the 1.2643 resistance area.
Failure to breakout above this level could potentially put the GBPUSD at risk of a correction below 1.2516 level of support.
Is WTI Crude Oil Ready To Break Past The 41.00 Handle?
Crude oil prices gained over 1.5% intraday on Tuesday.
Oil prices remain firmly entrenched in a sideways pattern. The strong resistance area near 40.36 – 40.50 level is so far proving hard to break.
However, with the OPEC meeting underway, the fundamentals might help to push prices higher.
Still, oil prices will be challenged near the 42.00 handle.
Only a breakout above this level could potentially confirm further gains.
The next main target comes near the 45.00 region. To the downside, the risks are higher.
The lower support level near 38.00 will be tested in case of a decline.
Gold Trades Above 1800, But Fails To Make New Highs
The precious metal is holding steady above the 1800 psychological level. However, price action is yet to post fresh highs.
During the intraday session on Tuesday, price briefly slipped to lows of 1790.28.
However, price action was rejected at this level, pushing gold to close above 1800.
If the precious metal fails to breakout above the 9th July highs of 1815.77, we expect the sideways consolidation to continue.
This would probably increase the odds of gold prices making a correction down to the 1780 level of support.
By Orbex
