EURUSD Gains Look to Be Overdone
The euro retreats after testing a session high of 1.1354 on Friday, marking a rally to a one-year high. Prices are consolidating near the 1.1300 region at the moment. A close below this level could signal a move back to the 1.1200 handle. This will mark a confluence of the secondary trend line and the horizontal support.
Can WTI Crude Oil Find a Bottom?
WTI crude oil prices fell over 9% on Friday as price touched a three-year low of 41.06. This coincides with a multi-year support level at 41.50. If this level holds, we could see some consolidation taking place. This consolidation will most likely remain within the 41.50 and 46.50 levels. Watch for any initial signs of higher low forming which could signal a rebound.
GBPUSD Shifts Direction as Further Upside Likely
The pound sterling broke out sharply to the upside to pare losses from earlier sessions. After recovering above 1.2858, cable surged sharply higher above 1.2960. With the current momentum, we expect GBPUSD to rally to the unfilled gap from Jan 31st at the 1.3200 region. Any near term retracements could bring in new buyers, keeping the currency supported to the upside.
XAUUSD Slips After Failing to Break Past Previous Highs
The precious metal eased back after failing to keep up the momentum. The failure to break out past the Feb 24 highs at 1689 puts the commodity at risk of a pullback. Initial support at 1655 was already tested and could be at risk of failing to stall the declines. However, given the current volatility, it would be best to wait and watch how the current momentum unfolds.