Markets React to Fed’s Second Cut in 2 Weeks
Euro Supported by the Major Trend Line
The common currency broke past the initial, steeper trend line. But it is finding support near the confluence of the major trend line and the horizontal support level. The price level near 1.1100 remains strong for the moment.As long as this holds, we could expect some upside in prices.
However, the upper resistance level near 1.1200 comes into question. Alternatively, a break down below 1.1100 and the trend line will trigger further declines. We expect the older support at 1.0958 to then come into the picture eventually.
GBPUSD Completes the Descending Triangle Pattern
GBPUSD fell to October 2019 lows near 1.2200. Price action is looking somewhat alive at this support. We expect that following the strong sell-off, the pound sterling will be retracing some of the losses.
But, for the near term, price action could remain range-bound. The upper price area at 1.2582 comes into the picture and GBPUSD could hold this corridor for the near term.
Is WTI Crude Oil Forming a Double Bottom?
Oil prices opened weaker on Monday and drifted to intraday lows near 28.44 before recovering slightly. Price action is likely to close with a double bottom forming near the March 9th close of 30.37.
If this is validated, then with the bullish divergence on the 4-hour chart, we anticipate a rebound. The unfilled gap near 41.73 becomes the immediate upside target.
Can XAUUSD Find Support at the 200-day MA?
The precious metal continued its descent, unmoved by the Fed’s actions over the weekend. Price fell to fresh lows of 1451.07 intraday before pulling back. This also coincides with the 200-day moving average which hasn’t been tested since May 2019. If moving average support along with the horizontal support at 1462 holds, we can expect some rebound. The main upside resistance is seen at 1534, followed by 1569.