USD Struggles to Breakout from a Two-Month High

USD Struggles to Breakout from a Two-Month High

Euro Posts Declines For Three Consecutive Days USD Struggles to Breakout from a Two-Month High - 1

The euro currency is posting declines for three consecutive days. Price action is now trading below the 1.2050 level.

This comes even as the Stochastics oscillator is firmly below the oversold level. Price action posted a modest rebound back to the 1.2050 level where resistance has been established.

Given the current pace of declines, we could expect the common currency to fall to the 1.1900 level. The downside bias will only change if price rises above the 1.2050 level.

GBPUSD Turns Flat But Downside Bias Rises USD Struggles to Breakout from a Two-Month High - 2

The British pound sterling pushed below the rising wedge pattern and price action is likely to fall further.

The short term resistance level near 1.3678 is likely to keep a lid from price posting further gains. To the downside, we expect the declines to continue toward the 1.3500 level.

On the daily chart, price action is trading flat for the second daily session. However, a strong bearish candlestick is required to confirm further downside.

The daily Stochastics oscillator is also moving lower from the overbought levels for the moment.

WTI Crude Oil Rises For Third Daily Session USD Struggles to Breakout from a Two-Month High - 3

Crude oil prices are posting solid gains for the third consecutive session.

The gains come on the back of declining crude oil inventories. It’s further due to news that the Democrats took first steps toward advancing President Biden’s proposal of $1.9 trillion coronavirus aid.

Price action is now inching closer to the next main resistance level of 57.35. The Stochastics oscillator is also showing further room to the upside.

In the near term, any declines could see the price retesting the 53.77 level. However, it is unlikely that we will see any short term pullbacks currently.

Gold Prices Subdued Below 1850 USD Struggles to Breakout from a Two-Month High - 4

The precious metal is posting modest declines a day after the precious metal fell over 1.2%. However, price action remains well supported above the 1817.80 level.

In the near term, we expect price action to remain trading flat within the 1850 and 1817.80 levels.

The Stochastics oscillator is currently slipping into the oversold level. This could indicate further near-term downside.

Stronger price action is, however, expected on the back of fundamentals. This is especially regarding the Coronavirus stimulus bill.

John Benjamin

John Benjamin

John Benjamin is a Macro-Analyst at Orbex. John has over 8 years of experience specializing in the currency markets, tracking the macroeconomic and geopolitical developments shaping the financial markets. John applies a mix of fundamental and technical analysis and has a special interest in inter-market analysis and global politics.