With most of the US and European markets closed due to Easter Monday bank holiday, the currency markets are expected to be quiet.
Economic data is sparse with only the release of the US new home sales report later in the day. The quiet start to the week comes ahead of some key economic releases and central bank meetings due over the course of the week.
Euro Currency Turns Bearish Again
The common currency gave up the gains from last week as prices slumped to post new one-week lows. The slump in the currency came even as economic data on Friday saw the US building permits and housing starts coming in lower than expected. However, growth concerns continue to plague the common currency bloc.
Will the EURUSD Test the Lower Support?
The euro currency briefly bounced higher to test the minor resistance level at 1.1246. Price has failed to breakout above this level and is currently seen pushing lower. If the previous lows at 1.1228 are tested, then the EURUSD could be seen falling back to the previous support at 1.1217. Only a breakout above the resistance at 1.1246 will signal further gains to the upside.
Gold Bounces Off 2019 Lows
The precious metal opened today after an extended weekend. After gold fell to fresh 2019 lows, the precious metal is currently seen rebounding higher. Economic data was sparse on Friday and the current jump in gold prices is seen as a result of technical positioning. Big ticket events due later this week such as the US advance GDP report will be key in shaping the direction of gold this week.
Will Gold Rise Higher?
Gold prices formed a bottom near the 1273 handle which also coincides with the 200-day moving average. As price formed a spinning bottom candlestick pattern, a bullish follow-through is required today. If gold manages to close higher, we anticipate further gains in store. Currently, gold is seen testing the previous minor resistance at 1278.80. A breakout above this level will signal further gains targeting 1284.60.
Oil Surges Over 2% as Iran Oil Import Deadline Set to End
Crude oil prices jumped over 2% on early Monday. The gains in the oil prices come as Washington will impose a total ban on crude oil imports from Iran. The US imposed sanctions on Iran in November last year. However, eight countries were exempt from the ban, mostly from Asia. The exemption on oil imports is likely to end on May 2nd. This will fully cut off Iran from the international oil markets.
Can Crude Oil Maintain the Bullish Momentum?
Oil prices surged higher by early Monday’s open and price action is currently testing the highs just below the 66 handle. This marks a retest of the previously breached support level. If resistance is formed near the 66 level, we expect oil prices to begin correcting lower. The initial support is at 64.50.