Euro Pulls Back at Support Ahead of ECB Meeting
EURUSD continues its retreat as price action slipped to the support area. There is also a confluence of the rising trend line, indicating that there is strong support at the 1.1300 region. If price action breaks below this level, then we expect the 1.1200 handle as the next downside target. To the upside, the 1.1500 level will be critical for price to continue further to the upside.
GBPUSD Gives Back Gains from Earlier in the Week
Price action in the cable saw the sterling falling sharply against the dollar. The declines came after price briefly tested the 1.3200 level. The break down below the initial support at 1.2960 has pushed prices lower below the trend line. If this continues, we expect GBPUSD to slip lower to 1.2858. But with the Stochastics oscillator moving from the oversold levels, we could see some upside minor correction back to 1.2960.
Oil Prices Rebound as Markets Digest Price Wars
Crude oil prices are recovering from the sell-off from Monday. Price action is up over 12% on the day after WTI crude oil fell to lows of 28.00. The resistance level at 41.00 will be the upside target for now. However, prices are consolidating into a bearish flag pattern. This raises the risk of a continuation to the downside, bringing the 28.00 level as a critical price level.
XAUUSD Holds Steady at Support
Gold prices are down over 1% on an intraday basis on Tuesday. The declines come amid heightened market volatility. Price action fell to the support area of 1650 as expected and is currently rebounding. We expect price action to hold above this level in the short term. A lower high off 1650 will probably suggest that the upside is coming to an end. However, for this to be confirmed, XAUUSD will need to then break past the 1650 handle.