The EURO rallied above the 1.2200 and 1.2250 levels against the US dollar. EURO traded to a new multi-month high a 1.2349 before it started a downside correction. The pair gained pace below the 1.2250 support and it even broke the 76.4% Fib retracement level of the upward move from the 1.2209 swing low to 1.2349 high. There was also a spike below the 1.2209 low and the 100 simple moving average (4-hours).The next major support is near the 1.2170 zone or the 1.2360 Fib extension level of the upward move from the 1.2209 swing low to 1.2349 high. The main support could be 1.2150.
Any more losses could lead the pair towards the 1.2120 support and the 200 simple moving average (4-hours). On the upside, the 1.2260 level is an initial resistance. The first key resistance is near the 1.2300 level, above which the pair could rise towards 1.2350.
GBP/USD’s pull back from 1.3702 extends today but stays above 1.3428 support. Further rise is expected as long as 1.3428 support holds. Break of 1.3702 will resume whole rise from 1.1409 to 61.8% projection of 1.1409 to 1.3482 from 1.2675 at 1.3956. On the downside, break of 1.3428 support will indicate short term top, and turn bias to the downside for deeper pull back, to 1.3134 support next.
The USDJPY is moving towards 104.50 on the upside from where a dip looks likely. Failure to stop at 104.50 could open up chances of 105 or higher in the longer run. Watch price action near 104.50 closely.
AUD/USD falls further today but stays above the support of 0.7641. The intraday bias is neutral in the first place and the second increase is slightly in favor. Conversely, a break of 0.7819 will resume the uptrend trend from 0.5506 to 0.7413 from 0.6991 to 0.8170. However, a break of 0.7641 will indicate a short-term topping in the event of a 4-hour bearish turn in the MACD. Intraday bias will be reversed for in-depth correction.
USD / CAD remains neutral at this point. As long as 1.2797 resistance is held, the outlook remains stay bearish. On the other hand, a pause of 1.2629 starts with a 100% projection of 1.4667 to 1.3672, followed by a projection of 1.2957 to 100% of 1.2473. However, given the bullish convergence of 4 hours post MACD, the resistance interval of 1.2797 indicates a short-term bottleneck. Intraday bias for 1.3257 resistance, Rebound Ltd. It’s turned upside down.
Having initially jumped to the fresh high since February 2020, WTI drops to $52.25, down 0.47% intraday, during Monday’s Asian session. The oil benchmark seems to take clues from the overbought RSI conditions while stepping back from a multi-day high. As a result, an upward sloping trend line from last Tuesday, at $51.65 now, gains energy sellers’ attention. However, the quote’s downside past-$51.65 will be challenged by Thursday’s high near $51.30 and the $50.00 psychological magnet, not to forget the 100-HMA level of $50.25.Meanwhile, fresh buying will eye the February 2020 peak surrounding $54.70 wherein the latest top near $52.80 and the $53.00 round-figure can offer intermediate stops during the upside.
XAUUSD has fallen sharply over the last couple of sessions indicating strong bears are in place that could drag the price lower towards 1780-1740 in the medium term. Watch for a possible pause or corrective bounce from 1820 (immediate support) to be followed by a deeper decline.
Legal: CF Merchants is the trading name of Commodity and Forex Merchants registered and regulated in many Jurisdictions. CF Merchants Limited is regulated with license number 24535/2018, at Suite 305, Griffith Corporate Center, P. O. Box 1510, Beachmont, Kingstown, Saint Vincent and the Grenadines as an International Broker Company under the company act of Saint Vincent & the Grenadines. The objects of the Company are all subject matters not forbidden by International Business Companies (Amendments and Consolidation) Act, Chapter 149 of the Revised Laws of Saint Vincent and Grenadines 2009, in particular but not exclusively all commercial, financial, lending, borrowing, trading, service activities and the participation in other enterprises as well to provide brokerage, training and managed account services in currencies, commodities, indexes and leveraged financial instruments.
Commodity and Forex Merchants Limited is authorized under license number 1092420 by the Companies House, Cardiff, United Kingdom on 21st August 2017.
High Risk Investment Warning: Margin FX are leveraged products that carry an extraordinary level of risk to your funds. Trading is not suitable for everyone and may result in you losing significantly more than your investments and therefore, you should not speculate with capital that you cannot afford to lose. You should consider whether you understand how this work and whether you can afford to take the high risk of losing your money. All the trading related information on this website is general in nature and does not take into account your or your client’s personal intentions, financial conditions and needs. We encourage you to seek independent advice if necessary. It is the responsibility of the client to ascertain whether he/she is allowed to use the services of the CF Merchants based on the legal requirements in his/her country of residence. Please read full Risk Disclaimer for more details.
Regional Restrictions: CF Merchants (SV) Ltd does not provide services and accept applications from the residents of certain countries, such as United States of America, Canada, Israel, North Korea and Saint Vincent & The Grenadines. The statistics on this website is not directed at residents in any country or jurisdiction where such distribution or use would be contradictory to local law or regulation.