EUR/USD holds steady above 1.1850 on coronavirus vaccine hopes

EUR/USD remains better bid above 1.1850 as the hopes for coronavirus vaccine and the prospects of the global economy returning to normalcy in 2021 continue to weigh over the safe-haven dollar. The EU calendar is light on Tuesday and therefore, the focus would be on the US Retail Sales data.

Acceptance above that level would invalidate the indecision signal by long wicks attached to Monday’s candle and imply a continuation of the recovery rally from the Nov. 11 low of 1.1745 toward the Nov. 9 high of 1.1920. 

Alternatively, a move below Monday’s low of 1.1814 would imply an end of the bounce from the Nov. 11 low and shift risk in favor of a re-test of 1.1745. A violation there would expose the Nov. 4 low of 1.1602.  The immediate bias would remain neutral as long as the pair is stuck within Monday’s trading range of 1.1814-1.1869. 

GBP/USD: Bulls await BOE’s Bailey to extend Brexit based gains above 1.3200

GBP/USD prints three-day winning streak above 1.3200 ahead of the London open. UK Brexit Minister Frost hints trade deal “early next week”. Vaccine hopes firm up but fail to defy the virus woes. BOE Governor Andrew Bailey’s speech awaited.

A two-week-old support line, currently near 1.3160, restricts the short-term downside of GBP/USD ahead of 1.3080/75 rest-area. Meanwhile, bullish MACD and sustained trading above 1.3100 favor buyers targeting to refresh the monthly top near 1.3315.

ADDITIONAL IMPORTANT LEVELS

OVERVIEW
Today last price    1.3221
Today Daily Change    24 pips
Today Daily Change %    0.18%
Today daily open    1.3197
 
TRENDS
Daily SMA20    1.3075
Daily SMA50    1.2969
Daily SMA100    1.2949
Daily SMA200    1.2714

Gold flatlined below $1900, as covid concerns offset vaccine hopes

Gold remains below $1900, having created a long-legged Doji candle on Monday, implying indecision in the market. Spiking coronavirus cases in the US offset vaccine optimism. The immediate bias appears neutral as long as prices hold Monday’s trading range of $1,864-$1,899. 

XAU/USD technical analysis

Gold has dropped below the 50-day and 100-day Simple Moving Averages and still suffers from some downside momentum – bearish signs. On the other hand, XAU/USD is trading above the all-important 200-day SMA. 

Support awaits at $1,860, which was a cushion in late October. The next level to watch is $1,850, now a double bottom after halting the decline in November and September. Further below, $1,820 and $1,790 are noteworthy. 

WTI does not rule out a move to $43.00

Monday’s uptick in prices of the WTI was in tandem with shrinking open interest, leaving the upside somewhat limited. That said, a move to recent tops in the $43.00 area per barrel remains on the cards ahead of some correction lower.CME Group’s advanced figures for Crude oil futures markets noted traders reduced their open interest positions by around 16.7K contracts on Monday, reversing at the same time six consecutive daily builds. Volume, instead, increased by around 118.5K contracts after four straight drops.