EURUSD Likely To Challenge Previous Highs
The euro currency is once again back on the front foot as price action inches closer to test the previously established two and a half year high at 1.2176.
The gains come as the common currency eased back from its declines earlier this week. Currently, the upside momentum is held by the support from the trend line.
However, it will now be critical for the euro to break past the previous barrier. Failure to break out from this two and half year high could result in a possible reversal in price action.
This would in turn once again shift focus to the downside.
The key support level is near 1.1900. Therefore, in the event that the EURUSD fails to break out any higher, we could probably expect a near term correction in price action.
GBPUSD Continues To Trade Flat, Above 1.3300
The British pound sterling continues to trade flat albeit, price action is firmly supported above the 1.3300 level.
Following the gap higher at the start of the week, the GBPUSD has been pushing lower. For the moment, there remains an unfilled gap from Monday’s open.
To the upside, price action is trading well below the key upper range of 1.3483. The weakness in the US dollar is currently helping the British pound to push higher.
However, it is unlikely to see any major gains coming in the near term.
We expect the sideways range to be held until there is some kind of a resolution to the ongoing Brexit talks between the EU and the UK.
WTI Crude Oil Advances To A Nine-Month High
Oil prices are trading bullish once again following the previous few sessions where price action was rather subdued.
As the bullish momentum slowly grips, oil prices are seen advancing to the previously formed nine-month high.
A continuation to the upside could possibly see prices testing a new ten-month high shortly. This would mean that prices would near the 48.00 level for the moment.
It would also put oil prices just $2 away from the psychological barrier of $50. The current gains to the upside are supported both by the technicals and the fundamentals in the markets.
The key support level at 45.00 remains the downside for the moment.
However, it is unlikely that we would see a sharp correction coming anytime soon.
Gold Prices Back Near 1850 Technical Resistance
The precious metal is trading over 1% on Tuesday.
The gains come amid fresh talks in the US Congress about a new proposed coronavirus stimulus bill. If this bill is passed, this would put an end to the weeks of speculation in the markets.
Gold prices have been trading rather flat after rising above the key support level of 1818.80 in early December this year.
For the moment, the technical resistance level of 1850 is being tested once again.
However, the stochastics oscillator on the four-hour chart is likely to print lower.
This could mean that gold prices could once again retreat back and settle within the range of 1850 and 1818.80.
