Dollar Rises to a Two-Month High

Dollar Rises to a Two-Month High

EURUSD Touches Down To 1.2050 Level Of Support Dollar Rises to a Two-Month High - 1

The euro currency finally fell to the support level of 1.2050, testing the level more firmly. While price action is trading below this level, we could expect to see some consolidating taking place.

The Stochastics oscillator is also firmly in the oversold level, it supports the possibility of price action consolidation near this level.

However, if the bearish momentum continues, then the euro currency is likely to extend declines further.

The next main support level is near 1.1900. However, if resistance forms near the 1.2050 level, the declines can be confirmed.

GBPUSD Breaks Down From Ascending Wedge Dollar Rises to a Two-Month High - 2

The British pound sterling is extending declines after losing the support from the trendline of the ascending wedge pattern.

With price action now clearing the ascending wedge pattern, further downside is likely.

As the Stochastics oscillator is now near the oversold level, we could expect to see a rebound in the near term. This could see a short term retracement back to the breakout level once again.

To the downside, price action is likely to find support near the Jan 26 swing lows of 1.3610. A break down below this level will confirm further declines to the 1.3500 level of support.

WTI Crude Oil Rises To A One-Year High Dollar Rises to a Two-Month High - 3

Crude oil price finally broke out from the range it has been in for nearly three weeks. The strong upside breakout pushed the commodity toward a new one-year high.

A pullback is likely to occur in the near term toward the upper range near 53.77. Price action will need to break out strongly above the 55.00 level in order to maintain the upside.

Given the current momentum, the downside looks a bit limited for the moment.

However, this could change if oil prices lose the 53.77 support level. It would once again put price action back within the sideways range.

Gold Prices Slip Below 1850 Technical Support Dollar Rises to a Two-Month High - 4

The precious metal broke past the 1850 level of support on Tuesday.

The declines come as price action was consolidating between the 1850 and 1874 levels. If the current pace of decline continues, then we expect to see a move to the 1817.80 level of support once again.

The Stochastics oscillator is moving closer to the oversold levels. Therefore, the support area near 1874 is likely to find support once again.

This will keep prices supported above this level for the near term.

Given the current momentum, the precious metal is unlikely to breakout above the 1874 level of resistance.

John Benjamin

John Benjamin

John Benjamin is a Macro-Analyst at Orbex. John has over 8 years of experience specializing in the currency markets, tracking the macroeconomic and geopolitical developments shaping the financial markets. John applies a mix of fundamental and technical analysis and has a special interest in inter-market analysis and global politics.