EUR/USD even surpassed the 1.2100 resistance zone before facing hurdle near 1.2180. The pair is currently signaling a short-term downside correction below 1.2150. There was already a test of the 50% Fib retracement level of the upward move from the 1.2039 low to 1.2177 high.
An immediate support is near the 1.2100 zone. The next major support is near the 1.2075 level or the 76.4% Fib retracement level of the upward move from the 1.2039 low to 1.2177 high. Any more losses could lead the pair towards the 1.2020 support. Conversely, the pair could climb higher above the 1.2175 and 1.2200 resistance levels. The next major resistance sits near the 1.2250 level.
The intraday selling around the British pound picked up pace in the last hour and dragged the GBP/USD pair further below the 1.3400 round-figure mark. The pair was last seen trading near two-day lows, around the 1.3380 region, down around 0.45% for the day.
The pair extended Friday’s sharp retracement slide from the 1.3540 region – the highest level since April 2018 – and witnessed some follow-through selling for the second consecutive session on Monday.
USD/JPY pair is trading below all of its moving averages. The 20 DMA is flat a handful of pips above the current level, while the longer ones have accelerated their declines above it. Technical indicators lack directional strength, holding within negative levels. In the 4-hour chart, the pair is also below its moving averages, with the 20 SMA and the 100 SMA converging around 104.30. The RSI indicator is in recovery mode and about to cross its midline into positive territory, but the Momentum indicator remains directionless within negative levels.
AUD traded in a relatively quiet manner between 0.7410 and 0.7446 last Friday. Indicators are most neutral and AUD is likely trade sideways for today, expected to be within a 0.7405/0.7455 range.
USD/CAD has struck against a former rising trend line and is capped by its declining 50-day moving average. The daily RSI is badly directed. Readers may therefore consider the potential for further weakness below horizontal resistance at 1.3140. The nearest support would be set at April 2018 bottom at 1.2550 and a second one would be set at set at Feb. 2018 low at 1.2250 in extension.
WTI eases to $46.17 during early Monday. The energy benchmark crosses the short-term resistance line on Friday but failed to rise beyond $46.75. Also favoring the odds of the black gold’s further upside is the upbeat RSI condition as well as sustained trading beyond 100-HMA.
As a result, WTI bulls targeting March 202 peak surrounding $48.75 are looking for a clear break above the latest high of $46.75.Alternatively, a downside break below $45.80 can take rest on the monthly support line near $44.40 while the 100-HMA level of $43.70 can please the oil bears afterward.
Gold prices have reached an immediate resistance level at its 20-Day SMA, which is also the middle line of its Bollinger Band. Piercing through this level may signal a potential trend reversal, whereas a failed attempt may lead to another harmonic pullback with an eye on US$ 1,750 for support. The overall trend appears biased toward the downside, as suggested by consecutive lower highs and lower lows.
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