The Euro rallied against its main counterparts during Thursday’s trading session, after comments from European Central Bank President Mario Draghi ignited speculations that QE tapering will be on the table this autumn. Euro bulls were swift in using this opportunity to send the EURUSD higher, as the currency pair ventured to levels not seen since August 2015 – above 1.1600. From a technical standpoint, the EURUSD is heavily bullish on the daily charts, as there has been a consistent pattern of higher highs and higher lows. Prices are trading above the daily 20 Simple Moving Average, while the MACD has also crossed to the upside. The breakout and daily close above 1.1615 should encourage a further appreciation towards 1.1700.

Sterling pressured below 1.3000

Sterling was vulnerable to steep losses on Thursday with prices breaking below 1.3000 as concerns heightened over the Brexit negotiations in Brussels hitting a brick wall. The Sentiment towards the British Pound was already bearish amidst the soft macro-fundamentals at home and uncertainty abroad may compound to the downside. From a technical standpoint, the GBPUSD is under pressure on the daily charts and is at risk of trading lower if bears secure a weekly close below 1.3000. Repeated weakness under 1.3000 may encourage a further depreciation towards 1.2850.

Gold finds comfort above $1240

Gold sprinted to a fresh three-week high at $1247.44 during Thursday’s trading session, after European Central Bank President, Mario Draghi’s comments suggested that QE tapering could be on the table this autumn. A vulnerable US Dollar, coupled with political uncertainty in Washington, supported the metal further as prices remained firm above the $1240 dynamic level during Friday’s trading session. Although further upside may be on the cards in the short term, as bulls exploit Brexit developments and political uncertainty in the US to push prices higher, longer term gains could be limited. With the rising prospects of a tighter global monetary policy potentially impacting the zero-yielding metal this quarter, bears are still in the game. From a technical standpoint, the breakout above $1240 may encourage a further incline higher towards $1260.

Commodity spotlight – WTI Crude

WTI Crude retreated from $47.70 on Thursday as the ongoing oversupply concerns encouraged bears to install fresh rounds of selling. The story around oil this year continues to revolve around global supply glut and investors will be paying attention to see whether OPEC moves forward with deeper cuts in an effort to rebalance the markets. With OPEC and Non-OPEC members meeting on the 24 July, markets will be closely observing if the increased production from Nigeria and Libya prompts OPEC to request for production caps from both nations. From a technical standpoint, WTI Crude remains in a bearish trend on the weekly charts with a technical bounce currently in play. A failure for bulls to break above $48.00 may encourage a further decline back towards $45.

Silver bulls supported by Dollar weakness

Silver bulls received inspiration this week in the form of Dollar weakness, which sent the metal towards $16.35 during Friday’s trading session. Prices are slowly turning bullish on the daily timeframe with a breakout above $16.50 encouraging a further appreciation towards $16.80. From a technical standpoint, prices are trading above the daily 20 SMA while the MACD has also crossed to the upside. For bulls to seize control on the daily charts, a decisive breakout and daily close above the $16.80 lower high will be needed.