Risk on sentiment pushes dollar lower
Euro Closes The Week Almost Flat
The euro currency managed to pull back after hitting a two-week low during the week. Price action remains steady within the 1.2050 and 1.2144 levels for the moment.
The overall trend remains flat with the key price level established. Only a strong break out from either of these levels will indicate further direction in the trend.
The Stochastics oscillator on the daily chart could likely signal a move to the upside.
However, for this to happen, the euro currency will need to break out above 1.2177 – 1.2144 levels.
To the downside, support is firmly established at 1.2050 which has held up on the previous retest.
The British pound sterling has closed with gains for six consecutive weekly sessions so far.
The gains put the GBPUSD over a three and half year high, closing on Friday at 1.4018. This puts the currency pair near a multi-year support/resistance level.
A continuation to the upside could see further gains coming.
In the short term, price action is able to make consistent higher lows in maintaining the bullish trend. Therefore, further gains are likely as long as the current moment holds.
The daily Stochastics oscillator is in the overbought levels since 9th February. This could, however, change if the momentum shifts to the downside.
For the moment, the initial level near 1.3851 will be key ahead of any short term corrections.
Oil Prices Pullback From A 13-Month High
On Friday, WTI Crude oil prices closed with back to back losses. This led to the weekly price action closing in the red after prices briefly rose above 61.35 earlier in the week.
The declines come after oil prices have been moving in a sharp and steady trend.
On the 4-hour charts, we see the trendline breached. This has led to a modest pullback with prices rejected ahead of moving lower.
If oil prices continue to move lower, then we could see the 57.35 level of support being tested. Establishing support here could potentially boost the upside.
The Stochastics oscillator is currently near the oversold levels and could see some recovery in prices.
To the upside, the price level of 60.87 needs to be breached in order for oil prices continue pushing higher.
Gold Pulls Back From A Seven-Month Low
The precious metal fell to a seven-month low over the week before managing to recovery with bullish gains on Friday.
Price action closed with gains after Thursday’s doji pattern. This also comes near the support level of 1764.
With the Stochastics oscillator also turning higher, the current rebound could see gold prices likely to test the 1817.79 level of to establish resistance once again.
Overall, price action could remain trading within these levels for the near term. Further downside is likely if gold loses the support near 1764.
For the moment, there is a possibility that the precious metal could move to the upside.
This is especially true with the Stochastics oscillator on the daily chart moving deeper into the oversold levels.