By Orbex
EURUSD Finally Breaks Past 1.1000 Level
The euro is trading above the 1.1000 level for the first time in two months.
The gains came about on the Eurozone stimulus.
The current gains will now see the upside rising towards 1.1132 where there is a strong chance of resistance to form.
In the near term, watch for a potential pullback to the current gains.
Forming support near 1.1000 will potentially validate the upside bias.
Free Reports:
Get Our Free Metatrader 4 Indicators - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter
Get our Weekly Commitment of Traders Reports - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.
But for the moment, the price level near 1.1000 remains vulnerable.
A close below this level once again will put EURUSD back into its old sideways range.
GBPUSD Attempts To Recover After A Pullback
The GBPUSD currency pair is looking somewhat bullish after the initial pullback looks to be complete.
Price action fell back to the price level of 1.2277 after a brief rise initially.
The current recovery will confirm the potential upside for the currency pair.
We expect GBPUSD to rise to 1.2424 in the near term. This will push prices up to the 8th of May highs.
Further gains will likely happen only on a breakout above this level.
In the meantime, we expect GBPUSD to remain in a holding pattern within these new levels.
Oil Prices Slip Below $33.66 Once Again
WTI Crude oil prices are finding it difficult to break past the 33.66 level.
After briefly trading above this level, oil prices are back below this handle once again.
But as a result, a soft double bottom pattern is forming near 31.72. This puts the upside bias toward a target of 37.00.
Given that oil prices remain vulnerable to the fundamentals, there is potential that prices could pullback lower.
Furthermore, prices have failed to establish any lower support which also adds to this view.
Therefore, if oil fails to breakout above 33.66, then we could see the downside risks building up.
XAUUSD Consistently Posting Lower Highs
The precious metal is trading somewhat bullish as it attempts to recover the losses from the previous two sessions.
However, the intraday charts show a consistent lower high forming, alongside lower lowers.
This is indicative of a downtrend that is not that significant just yet. For now, prices are back above the 1717.65 level.
A breakdown here could see price slipping to previous lows of 1696.86.
Only a strong close below this level will confirm further downside which could come around the 1671.95 level.
By Orbex
