EURUSD Snaps A Four Day Losing Streak

The euro currency posted gains on Friday, marking an end to four consecutive daily declines. The rebound comes after price reversed near a three-month low of 1.1951.

As a result, prices pared losses to close on Friday near 1.2050. This level initially served as support.

If price action forms resistance here, then we expect to see the EURUSD trading within the price band of 1.2050 and 1.1951.

A breakout from this range will further set the direction.

To the downside, the next support level is at 1.1900. To the upside, a strong close above 1.2050 could open the way for price to test the 1.2144 level next.

GBPUSD Price Action Invalidates Ascending Wedge Pattern

The British pound sterling continues to hold a strong bullish momentum. The strong reversal after price fell to a two-week low has now invalidated the ascending wedge pattern.

This keeps price action biased to the upside. After Friday’s close, the GBPUSD is trading back close to the three and half year high.

The currency pair has also now closed with bullish gains for four consecutive weeks.

Still, the momentum is slowing and unless the GBPUSD closes strongly above 1.3755, we expect price action to remain flat near the current highs.

Oil Prices Settle Near A 13-Month High

WTI Crude oil prices continued to advance with price action closing near a 13-month high. Prices briefly traded close to the next key resistance level of 57.35.

We could expect a push higher for the commodity to test this level firmly. Further gains can be expected only on a strong breakout above this level.

This means that a reversal near 57.35 will potentially see a possible retracement coming.

The previously held resistance level near 53.77 remains the initial downside target for the moment.

The price level near 40.55 however marks the 61.8 Fibonacci retracement level for the decline from 65.62 in January 2020 through the zero level on 20th April.

Therefore, the correction, if applicable could see a stronger pullback.

Gold Prices Pull Back From A Three-Month Low

The precious metal managed to recover some of the losses on Friday. Price action closed with over one percent gains on the day, after falling to a three-month low previously.

The retracement puts gold prices close to the 1817.80 level where resistance could form.

Unless we see a strong close above 1817.80, gold prices could hold a sideways range between 1817.80 and the recent lows near 1784.81.

Despite the current pullback, gold price closed on a bearish note for the week. Therefore, a continuation to the downside cannot be ruled out.