The EURUSD broke support levels 1.2020 and 1.2000. The pair was trading near the 1.1950 level and formed a low at 1.1951. Recently, there was a reversal above the 1.2000 level. The pair recently dropped from 1.2156 high to a low of 1.1951 and a 50% Fib retracement level. Conversely, there is strong resistance at 1.2100 and a simple 100 moving average (4 hours). There is also a key bearish trend line forming with resistance near 1.2100 on the same chart.
A clear break above the trend line resistance could lead the EURUSD to the 1.2150 resistance or the 200 simple moving average (4 hours). Even higher gains may be required to test the 1.2200 barrier. If there is a fresh drop, the pair could look to 1.1950 support again.
The GBPUSD is currently neutral. There is some stability to be seen, but a further rally is expected with support from 1.3564. . On the upside, break of 1.3758 will extend the uptrend from 1.1409 to 61.8% projection of 1.1409 to 1.3482 from 1.2675 at 1.3956 next. On the downside, break of 1.3564 support will turn bias to the downside for deeper correction instead.
The USDJPY initially remains neutral for some stability. Downside of retreat should be contained above 104.39 resistance turned support to bring another rally. On the upside, break of 105.76 will resume the rebound from 102.58, for 38.2% retracement of 111.71 to 102.58 at 106.06.
The AUDUSD has bounced well to in line with the rise in. We may expect an immediate rise to 0.77 which if breaks could extend towards 07750 on the upside. Immediate view is bullish.
The USD CAD remains neutral and some stability can be seen. It is in favor of recovery from a short-term low of 1.2588, while 1.2684 is somewhat supportive. . Break of 1.2880 will target 1.2994 support turned resistance. However, break of 1.2684 minor support will argue that the rebound has completed and bring retest of 1.2588 low.
The crude oil traded next major resistance level near 57.35. Only a strong breakout above this level can lead to further gains. This means that a reversal near 57.35 would likely lead to a reversal. The initial resistance target at this point is near the previously set resistance level of 53.77. 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.
The Precious metals increased from 1784 to 1800 above, as opposed to the expected decrease of 1760-171740. The rise was due to the fact that the dollar index could not exceed 91.50 and fell from 91.60 to test 91 on the downside. If the index re-attempts to bounce from 91 again, Gold could have some scope of falling back towards 1800-1780 again in the near term. Overall we cannot negate a bearish possibility while below 1860.
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