EUR/USD remains neutral first. On the upside, break of 1.1920 will reaffirm the case that consolidation from 1.2011 has completed at 1.1602. Further rise would be seen to retest 1.2011 high. However, break of 1.1745 support will turn bias to the downside to extend the consolidation with another falling leg.
GBP/USD has been failing to successfully breach the resistance at 1.3394 since the beginning of the week. During yesterday’s trading session, we witnessed an attempt to re-test the mentioned resistance, after which the bears took control and tested the support level at 1.3302. Currently, the Cable is located just above the mean of the emerging range 1.3302 – 1.3394. A breach of either of its boundaries could determine the future direction of the pair.
USD/JPY bulls managed to limit the sales to the support level of 103.72, taking full control over the last two trading sessions. This led to a wave of purchases that brought the price slightly below the resistance at 104.85. The expectations are for another test of the mentioned resistance and, in case of a successful breach, for the pair to probably rise towards the levels of around 105.45. In the negative direction, if the bears manage to prevail, a possible scenario would be another test of the support level at 103.72.
AUD/USD remains on the upside at this point, for retesting 0.7413 high. Decisive break there will resume whole rally from 0.5506. Next target is 0.7635 long term fibonacci level. On the downside, though, break of 0.7265 support will turn bias back to the downside, to extend the consolidation from 0.7413 with another falling leg.
USD/CAD drops to 1.2997, down 0.05% intraday, during Wednesday’s Asian session. Following its drop to November 09 low before a few hours, the quote has been wobbling between 1.2994 and 1.2999. Even so, a sustained trading below 21-day SMA and an absence of oversold RSI conditions favor the bears. As a result, a descending trend line from September 01, at 1.2911 now, gains the USD/CAD bears’ attention off-late. Though, the monthly low near 1.2930 can offer an intermediate halt during the downside.
WTI has decisively broken a key resistance level of US$ 43.80 with strong upward momentum. Overcoming this resistance may point to further upside potential in the medium term. The RSI indicator, however, has pierced an overbought threshold of 70.0, flagging risk for a short-term pullback. Prices have reached the upper Bollinger Band, which is commonly viewed as a dynamic resistance level. A pullback from here may lead to a re-test of US$ 43.80 - an immediate support level.
Gold price failed to climb above $1,900 and declined heavily. The price even traded close to the $1,800 level and it remains at a risk of more losses. If there is a clear close below $1,800 and $1,795, the price might continue to move down towards the $1,765 level. On the upside, the previous support near the $1,850 level is a major barrier. There is also a key bearish trend line forming with resistance near $1,855 on the same chart. To move into a positive zone, the price must settle above $1,850 and $1,855. Overall, gold price broke a major support zone and it is likely to extend its decline below $1,800.
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