EURUSD Gains On A Weaker Dollar And ECB Meeting

The euro currency made a rebound, led by a weaker greenback and the ECB meeting on Thursday.

The central bank did not make any changes which saw the euro rising as a result. However, the gains were capped near the familiar resistance area between 1.2177 and 1.2144 levels.

This has led to another bearish signal from the intraday Stochastics oscillator. As a result, if the euro fails to close above 1.2177, then a drop is likely.

This opens the way for the common currency to test the lower support at 1.2050. However, the daily price action looks somewhat bullish at this point. Therefore, only a close above 1.2177 will confirm further gains.

This potentially puts the 1.2050 level into the picture at the moment.

GBPUSD On Track To Settle Above 1.3700

The British pound sterling continues to keep a bullish hold. After failing to break out above 1.3700 level, prices managed to do so on Thursday.

With intraday gains pushing the GBPUSD somewhat higher, we expect the 1.3700 level to hold for the moment.

This will potentially open the way for the currency pair to post further gains. The next key target will of course be the 1.3950 level which was briefly tested as support back in April 2018.

However, the gains will continue only on a strong continuation to the upside.

At the current levels near 1.3700, price action is testing the support from 2018 March. Therefore, with this level now likely to act as resistance, we could see a decline.

WTI Crude Oil Settles Into A Sideways Range

Crude oil prices trade mixed as the developments on the ground unfold. With the new President Biden being quick to rejoin the Paris climate accord, speculators expect further changes on fossil fuel.

President Biden was quick to announce new curbs on the US oil industry. The current sideways range in the oil markets reflect this sentiment. Speculators remain on the sidelines for now in order to ascertain more data.

As a result, WTI crude oil prices are likely to maintain a sideways range within 53.77 and 51.87 levels for the near term. Only a strong breakout from this range will set the next direction.

The intraday Stochastics oscillator is also currently turning flat. To the downside, a close below 51.87 will open the way toward the 49.03 level of support.

While to the upside, a close above 53.77 could see oil prices building up the bullish momentum.

Gold Prices Trade Flat As Investors Weight Stimulus Prospects

The precious metal is giving back some of the gains made on Wednesday, after rising to a nine-day high on an intraday basis, prices are pulling back.

This comes as investors wait on further announcements from the new Biden administration. Speculation is high that the new Democrats government, which also now holds a thin majority in Senate could announce new stimulus measures.

For the moment, price action in gold remains flat in anticipation of the news. The current pullback could see gold prices retesting the 1850 level.

If strong support is established here, then we expect further gains. The 1911.50 level of resistance becomes the next upside target.

If the 1850 handle is lost, then gold prices are likely to head lower. The 1817.80 level comes in as support.