The EURUSD failed to breach and stay above the key resistance of 1.2174, but it is expected that, once the consolidation in which the pair is currently found is over, the levels in question will be tested again and consequently breached. In the negative direction, the first important support is found at 1.2082.
The GBPUSD below the support level of 1.3300 on Friday. The lower support near 1.3122 remains the key price point. As long as this support level holds, there is scope for the GBPUSD to push higher. However, prices will need to break out strongly above the 1.3300 level to continue the uptrend. This will then open the GBPUSD to the upper resistance level of 1.3483.To the downside, a close below 1.3122 could open the way for the cable to retest the 1.3000 round number support once again.
USD/JPY was limited around the resistance zone at 104.58 and tested the support level at 104.03. A confirmation of a breach here could lead to a deeper sell-off towards the important support zone at 103.72. In the opposite direction, the first resistance zone for the bulls lies at the level of 104.25, but only a breach of the next target at 104.58 could lead to change in the current market sentiment.
AUD/USD remains mildly on the upside. Current rally should target 0.7635 key long term fibonacci level. Decisive break there will carry larger bullish implication. Next target is 61.8% projection of 0.5506 to 0.7413 from 0.6991 at 0.8170. On the downside, break of 0.7485 minor support will turn intraday bias neutral and bring consolidations first.
USD/CAD is still descending, having outstripped all ranges back to May 2018. Friday’s small bounce at the lower border of the channel is not a technical reversal but a market disinclination at the end of the week and after a 2.3% decline since November 23 to break new ground.”
“Except for the channel lower border at about 1.2735 on Monday to start the week, which may offer another bounce or two, support lines reference trading levels from April 2018 and will be an insubstantial brake on the USD/CAD fall.”
WTI prices rose sharply on Thursday to rise close to the 48.00 level. However, prices pulled back into Friday’s close. This comes as the 45.00 level is firmly establishing as support. Thus, a pullback could see this support level being tested once again. Above the 48.00 level, oil prices will be contending with a retest of the 50.00 level. To the downside, below the 45.00 support area, a correction could bring the commodity down to test the 44.00 handle next.
GOLD trade flat for the second consecutive session. As a result, price action is trading within a tight band of the 1850 and the 1825 levels in the near term. The Stochastics oscillator remains biased to the downside. This could mean that if gold prices lose the 1817.80 level of support, then we expect the downside to continue.
The next key level of support will be near the 1750 level. It would also mean that gold prices will be moving lower beyond the 30th November lows of 1764.22.To the upside, price action will need to firmly close above 1850 and continue to the 1900 level to establish the uptrend.
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