EURUSD Reverses Near 1.2144 Resistance Level

The euro currency is giving back the gains made from Wednesday as price action failed to rise above the technical resistance level near 1.2144.

As a result, price action is quite bearish, amid the hidden bearish divergence as well. However, given the fact that price action has broken out from the falling price channel, this decline could merely be a retracement to the breakout level.

We could see EURUSD retest the breakout level near 1.2080 to the downside. Below this level, the lower support area near 1.2050 is also likely to hold the declines.

In the near term, we could expect the EURUSD to move in a sideways range between 1.2144 and 1.2080 levels.

GBPUSD On Track To Retest 1.3590

The GBPUSD currency pair is giving back the gains made from the previous day with prices turning lower.

On the intraday charts, we see prices trading currently below the 1.3821 swing low. A confirmed daily close below this level could potentially see price action testing the previous untested support level near 1.3790.

As long as this support level holds, we could expect to see further upside. But for price action to continue higher, we would need to see the GBPUSD rising past the current highs above 1.3850.

However, if the GBPUSD loses the 1.3759 level of support, then we could expect further declines in the near term.

This would also potentially open the way for the currency pair to slide towards the 1.3500 level of support.

WTI Crude Oil Rally Takes A Pause

The recent pace of strong gains in the WTI crude oil market is seen to be slowing with prices likely to close flat for a second consecutive day. This could potentially see the onset of a short term correction in the markets.

The initial support level near 57.35 is likely to be tested in the short term. As long as this support level holds, we could expect crude oil prices to maintain the upside bias.

However, in the event that oil prices lose the 57.35 support, then we might expect to see a steeper correction. Below this level, the next main support comes in near 53.77.

Given the recent bullish momentum in the oil markets, there is also strong evidence of a bearish divergence building up.

Therefore, this could see a short-term correction which can only be confirmed upon a daily close below the 57.35 support level.

Gold Prices Slip To A Three-Day Low

The precious metal is down nearly 1% intraday as the short term bearish momentum is strong. Price action is likely to retest the support area near 1817.80.

The stochastics oscillator on the intraday charts are also signaling further room to the downside. However, the declines might stabilize after testing the 1817.80 level.

In the event that gold prices breakdown below this level, then we might expect to see further declines.

The initial price level to watch will be the 1785.25 level which marks the lows from the 4th of February.

A close below the swing low could potentially open the way for gold prices to test 1764.22 next.