Dollar recovers from a fresh two and half year low

EURUSD Pares Gains Near Trend-Line

The euro currency is down about 0.20% intraday. The declines come right after the common currency rose to a new two and a half year high.

However, the test of the trendline from below indicates strong resistance here. For the moment, the current continuation remains questionable.

The euro currency will need to post a strong decline and a lower high to confirm the start of a correction.

For now, the initial support is near the 1.2215 level. As long as this level holds, the upside bias in the euro remains intact.

The Stochastics oscillator is also quite overbought and gives scope for further declines in the common currency.

The British pound sterling is seen giving back the gains made on Tuesday. This puts price action to trade rather flat but increases the downside bias.

On the short term charts, the formation of a lower high indicates that the pound sterling could push lower.

However, prices will contend with the initial support level near 1.3506. As long as this level holds, there is scope for the GBPUSD to make gains.

However, if prices close below this level convincingly, then there is scope for a continuation to the downside.

This will bring the sideways range of 1.3500 and 1.3100 back into focus.

Oil Gains As Saudi Cuts Output

WTI crude oil touched $50.00 a barrel on Wednesday in the early Asian session. The gains came after the OPEC+ meeting saw Saudi Arabia cutting oil output by one million barrels per day.

The rise to $50.00 marks the first time testing this level since February 25, 2020. For the moment, price action is seen retesting the rising trendline from below.

If the trendline holds, then we expect to see a possible reversal off the $50.00 handle.

A breakout above the trendline could see further gains likely. However, for the moment, oil prices could consolidate between the 50.00 and 47.00 price levels.

Gold Price Retreats Off 1950 Resistance

The precious metal once again failed to breakout above the key 1950 level of resistance.

Following the failure, gold prices lost close to 2.30% intraday. The declines push gold prices back to the key support level near the 1900 – 1911 price area.

As long as this support level holds, gold is likely to post a rebound.

However, if price closes convincingly below the 1900 level then that could potentially put an end to the current rally.

For the moment, the bias in gold prices remains mixed.