EUR/USD

EUR/USD is trading around 1.22, the highest since 2018 amid vaccine, US stimulus and Brexit optimism. Eurozone PMIs gave another boost to the common currency. US retail sales and the Fed decision are awaited.

Euro/dollar is trading within an ascending triangle, which is a bullish pattern. The ceiling of this triangle is 1.2177, the 2020 high which was tackled several times. Momentum remains to the upside while the pair is also trading above the 50, 100 and 200 Simple Moving Averages. 

Above 1.2177, the next lines to watch are the round 1.22 and then 1.2250 and 1.2310, all played roles in 2018.

Support awaits at 1.2120, which provided support earlier in the week and is also where the 50 SMA hits the price. It is followed by 1.21 and 1.2060, stepping stones on the way up.

GBP/USD

The GBP/USD pair rallied towards 1.3550, on reports the UK has accepted the idea of ‘managed divergence’ in exchange for preferential access to the single market.

The Relative Strength Index on the four-hour chart is nearing 70 – on the verge of entering overbought conditions. Will cable correct lower? A Brexit deal may overwhelm the RSI. Pound/dollar remains above the 50, 100 and 200 Simple Moving Averages and momentum remains positive. 

Resistance awaits at 1.3520, the daily high, followed by the 2020-peak of 1.3540. Further above, 1.36 and 1.3730 are lines last seen in 2018.

Support is at 1.3480, a peak that was seen last week, followed by 1.3450, a high point from this week. Further down, 1.34 and 1.3270 are the next lines to watch.

USD/CAD

USD/CAD’s daily RSI has diverged in favor of the bulls. The 14-day Relative Strength Index (RSI) has produced higher lows in the below-30 or oversold region this month, contradicting lower lows on the price chart. That bullish divergence indicates a potential for a corrective bounce.

he Canadian Dollar scored a trifecta this week with crude oil prices rising to their best level since the March pandemic advent, favorable technical indicators and the continuing aversion to the American currency from the still rising COVID-19 count in the United State

Gold

As The USCongress leaders make progress on talks over a $1 trillion covid aid package, markets eye an imminent stimulus deal, knocking off the US dollar further south. Expectations of additional funds are boosting the inflation-hedge Gold (XAU/USD), as it extends its break above the $1850 level.

On a break above the latter, the bulls are likely to challenge a strong cap at $1870, the Pivot Point one-week R1.

Acceptance above that level could prompt a fresh advance towards the $1876 barrier, which is the convergence of the previous week high and Pivot Point one-day R2.

On a break above the latter, the bulls could challenge the $1840 level, which is the confluence of the Pivot Point one-day R1 and SMA10 one-day.

Alternatively, if the bulls fail to defend immediate support at $1856, the previous day high, the price could be poised for a gradual decline amid several minor support levels stacked up to the downside.

The critical support at $1844 is expected to be a tough nut to crack for the bears.

WTI

WTI keeps a fresh high since March 2020 despite downbeat API stockpiles. The energy benchmark recently shrugged off weekly inventory data from the American Petroleum Institute (API) while cheering the risk-on mood near the fresh high

WTI stays positive around $47.75 amid the initial Asian session on Wednesday. The energy benchmark recently shrugged off weekly inventory data from the American Petroleum Institute (API) while cheering the risk-on mood near the fresh high since March 04, 2020. Although the official stockpiles from the Energy Information Administration (EIA) will be the key, PMIs from Western leaders and the Fed meeting will also be important to watch going forward.