EURUSD Back Near 1.2144 Resistance Area
The euro currency has now posted back-to-back gains for two consecutive sessions. As a result, price action is trading back near the technical resistance area of 1.2144.
However, price action remained somewhat mixed as the buyer still remains to the upside. A strong reversal of the resistance area near 1.2144 could potentially confirm the downside.
For the moment, we expect the EURUSD to consolidate between the 1.2144 and 1.2050 levels. Further gains can only be expected if the common currency can close strongly above the 1.2177 level.
The stochastics oscillator continues to remain rather subdued and points to a possible drop towards the 1.2050 technical support.
GBPUSD Consolidates Within The Ascending Wedge Pattern
The British pound Sterling continues to trade rather mixed albeit near the recent highs. The consolidation has formed the ascending wedge pattern which could potentially signal a correction lower upon a bearish breakout.
On Friday, the currency pair managed to pull back from the recent loss only to give back the gains towards the end of the week.
The stochastics oscillator remains trading flat. This suggests the sideways price action in the GBPUSD currency pair.
As long as no new highs are forming, the GBPUSD currency pair is likely to eventually post a correction towards the 1.3500 level.
Crude Oil Closes Almost Flat For The Third Consecutive Week
Consolidation in the crude oil markets continues to stretch into the third week. Price action continues to trade nearly flat for three weekly sessions so far.
As a result, price action is firmly entrenched within the sideways range between 53.77 and 51.87.
The flat trading comes amid concerns of the vaccine rollout which could potentially delay the global economic recovery. Price action has been repeatedly testing the 51.87 level of support which has held up so far.
However, a breakdown below this level could potentially see a short-term correction on the horizon.
We continue to maintain that the downside target remains near the 49.00 handle for the moment.
Gold Gives Back Gains After Testing 1874 Resistance
The precious metal attempted to post modest gains on Friday as price action tested the 1874 level of resistance.
However, prices gave back the gains rather quickly intraday to settle back near the 1850 handle. Failure to break out above the 1874 level of resistance could signal a possible move lower.
However, price action remains flat within 1874 and 1818 levels for the moment. Given the current positioning of the stochastics oscillator, we might expect to see prices pulling over and possibly testing the 1818 level of support.
But, on a weekly basis, we see price action trading within the range from the previous week. As a result, a breakout is likely to occur in the medium term.