By Orbex
Will EURUSD Post A Lower High?
The euro currency is trading modestly following last Friday’s declines.
However, the currency pair remains strong with an upside bias.
At the moment, price action indicates a low forming around the 1.1287 level.
A rebound off this price level should see another attempt to rise higher.
However, if EURUSD fails to breakout above the previous higher close at 1.1350, then we expect a move lower.
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A breakdown below 1.1287 will signal a move to the 1.1132 level where technical support will most likely form.
GBPUSD Remains Strong At A Three-Month High
The British pound sterling rose to a fresh three month high as prices briefly touched 1.2728 before pulling back modestly.
The price action on the daily chart could indicate a possible flat close, however.
Unless the currency pair can push further, there is a strong chance of a correction in place.
For the moment, the support area at 1.2643 will be critical.
A breakdown below this level will, however, signal a move to the 1.2424 price level which could attract new buyers into the market.
Crude Oil Retreats After Hitting $40.00
WTI Crude oil prices made a strong gain in the early Asian trading session on Monday. Prices, as a result, hit the key level of 40.00.
However, the commodity gave back the gains just as quickly and is down over 2% intraday.
The volatility in crude oil continues and this move could see a possible correction lower.
For the moment, the minor support level at 37.67 might stall the declines.
But in the event of a breakdown lower, we expect oil prices to correct to the 34.42 level.
A lower high will possibly validate this downside bias.
Gold Bounces Off Support, But Downside Persists
Gold prices caught a bid following last Friday’s sell-off. Price action quickly bounced back off the 1671.95 level of support.
But despite this move, the lower high that is likely to form could be indicative of a move lower.
Watch how price behaves near the 1671.95 level. A breakdown below this key support could accelerate declines.
Technically, the next key level of support is at the 1571.78, which was briefly tested around late March this year.
Watch for a possible breakout of the falling trend line, which can potentially signal a turnaround in prices.
By Orbex
