EUR/USD Rejects 1.20 again. Yesterday’s price action had been rather choppy with EUR/USD once again failing to convincingly break above 1.20. However, dips have been short-lived with the USD based view that rallies in the greenback are likely to be faded. Particularly as the longer-term view remains that 2021 will see a strong cyclical rebound thus benefitting USD counterparts. In turn, dips are likely to find good support, particularly down towards 1.1920 as long as markets remain risk-on. Elsewhere, on the data front, market focus will be on the ISM Manufacturing PMI, where a firmer than expected reading could see a brief pullback in EUR/USD.
GBP/USD faced a strong resistance near 1.3400 against the US Dollar. GBP/USD corrected lower after two rejections, but dips were limited below 1.3300. A low was formed near 1.3287 and the pair is currently trading in a range. There is also a key bullish trend line in place with support near 1.3310 on the same chart. If there is a downside break below the trend line support and 1.3300, there is a risk of more downsides.
The next major support sits at 1.3280, below which the pair could decline towards the 1.3240 and 1.3220 support levels.
Conversely, the pair could make another attempt to clear the 1.3400 resistance. If it succeeds, there could be a steady rise towards the 1.3450 and 1.3480 levels in the coming sessions.
The U.S. dollar managed to gain positions against the Japanese yen and the pair is preparing for a test of the resistance zone at 104.43. A successful breach here would give the bulls an extra incentive to attack the next significant level at 104.85. In the negative direction, the main support remains the level of 103.72, followed by the one of 103.20.
Our preference Long positions above 0.7335 with targets at 0.7385 & 0.7405 in extension.Alternative scenario Below 0.7335 look for further downside with 0.7320 & 0.7300 as targets. Comment The RSI calls for a rebound.
We have been watching the USD/CAD pair closely over the last week. The pair has now broken below support at 1.299 after consolidating since September. It is looking like the downtrend that began back in March is about to continue. We would prefer to see some more downside momentum before we can rule out any potential continuation of the consolidation. Traders will be watching how price action reacts around the 1.30 level. The next major support area is at 1.2805.
Technically, oil prices are stuck near the resistance level of 45.50. Furthermore, there is also a consolidation with the trend line and the horizontal resistance level. Therefore, if price breaks from this region, we could expect to see a stronger correction lower. The next key level of interest will be near the 42.50 level of support.
Technically, gold prices broke a key support level of US$ 1,800 last week and thus opened the door for further downside potential with an eye on US$ 1,750 support. The overall trend appears biased toward the downside, as suggested by consecutive lower highs and lower lows. The RSI indicator reached oversold territory, pointing to a potential technical rebound. Prices have also reached the lower Bollinger Band, which is commonly perceived as an immediate support level.
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