From a technical point of view, on a daily chart, EUR/USD still stands above its rising 50-day moving average . Readers may therefore consider the potential for further advance above 1.1850. The nearest threshold would be set at previous overlap at 1.2150 and a second one would be set at horizontal resistance at 1.2300.
GBP/USD has eroded its long term downtrend and is approaching the 1.3500/1.3515 December 2019 high. This is a long term pivot and both levels represent major resistance, we would allow for them to hold the initial test.Nearby support is offered by the 55 day moving average at 1.3065 and also by 1.3009, the 5 month uptrend and for now, while above here the market remains bid.
USDJPY looks to strengthen further following its rally during its Wednesday trading session. On the downside, support stands at 104.50 level. Below this level will turn attention to the 104.00 level. Further down, support is seen at the 103.50 level. A break through here will open the door for more decline towards the 103.00. On the upside, resistance comes in at the 105.00 level where a break will target the 105.50 level. Below that level will turn focus to the 106.00 level and then lower towards the 106.50 level. Its daily RSI is bullish and pointing higher suggesting more gain. On the whole, USDJPY faces further upside threats in the days ahead.
The Australian dollar was bullish against all of its major pairs. The AUD/USD gained 39 pips on Wednesday as the pair extends its uptrend towards key resistance at 0.742. A break above 0.742 would be a strong bullish signal. Using the “technical Insight” research tool under the Market Analysis tab, a short-term bullish signal has been identified in the Commodity Channel Index (CCI) indicating a relatively far deviation from the pair’s 20-day average price.
USD/CAD’s decline is still in progress and intraday bias stays on the downside. Next near target will be 61.8% projection of 1.3389 to 1.2928 from 1.3172 at 1.2887, and then 100% projection at 1.2711. On the upside, above 1.3025 minor resistance will delay the bearish case, and turn bias neutral first.
Crude breaks out of the range bound price action carried over from the third quarter following the failed attempt to close below the Fibonacci overlap around $34.80 (61.8% expansion) to $35.90 (50% retracement), and the price of oil may continue to retrace the decline resulting from the COVID-19 pandemic as the break above the August high ($43.78) brings the March high ($48.66) on the radar The Relative Strength Index (RSI) shows a similar dynamic as the oscillator breaks out of the downward trend from June and approaches overbought territory, with a move above 70 likely to be accompanied by higher oil prices like the behavior last seen in 2019.
The move back above the $44.60 (61.8% expansion) to $45.10 (61.8% expansion) region has kept the upward trend from November intact, with the $49.20 (50% expansion) area in focus as it largely incorporates the March high ($48.66).Next region of interest coming in around $52.90 (78.6% retracement) to $53.30 (38.2%
From a near-term technical perspective, gold has confirmed a golden cross formation on the hourly chart, where the bullish 50-hourly moving average (HMA) cut the downward-sloping 200-HMA from below. The bullish crossover opens doors to the further upside, with eyes set on the $1850 level, the previous long-held support now a powerful resistance. Ahead of that level, the November 24 high at $1839 could be tested. The hourly Relative Strength Index (RSI) has turned south but still holds well above the 50 level, currently at 64.30, allowing for more gains.
Meanwhile, the first line of defense for the bulls is seen at bullish 21-HMA at $1827, below which the $1815 cushion could be tested. The price pierced above the 200-hourly moving average (HMA) at $1819, offering extra zest to the XAU bulls after the big breakout. The hourly Relative Strength Index (RSI) marches into the overbought territory, currently at 74.05, implying that the price could reverse to test the 200-HMA before resuming its upward journey towards the $1850 level.
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