Euro bulls struggled to claw back control during Monday’s trading session, after strong losses on Friday sent the EURUSD tumbling towards 1.2400.
The bullish sentiment towards the European economy could support appetite for the Euro in the medium term. Short-term, bears are likely to attack further if prices remain below 1.2440. Focusing on the technical picture, the EURUSD could be forming a technical correction on the daily charts, with 1.2350 acting as a key level of interest. Prices remain above the 50 Simple Moving Average, while the MACD trades to the upside. A creation of a new higher low around the 1.2300 region may provide a platform for bulls to push the currency pair higher. If the 1.2300 level fails to defend, such could open a path back towards 1.2180.
Sterling snoozes ahead of Carney
Sterling struggled for direction against the Dollar ahead of Governor Mark Carney's speech later today.
The story defining the Pound’s price action continues to revolve around Brexit developments and political drama at home.
Although the GBPUSD staged an impressive rebound last week, this has little to do with a change in sentiment towards the Pound and is suspected to result from broad-based Dollar weakness. Although heightened expectations of higher UK interest rates could support the Pound, Brexit uncertainty is likely to expose the currency to downside risks. From a technical standpoint, the GBPUSD is at risk of sinking lower if prices remain below the 1.4100 level. A technical breakdown below 1.4000 could encourage a decline towards 1.3850. Alternatively, a daily close above 1.41000 could inspire bulls to challenge 1.4230.
Commodity spotlight – Gold
Gold edged lower during Monday’s trading session, with price slipping towards $1347 as the Dollar stabilized.
While US rate hike expectations could see the greenback edge higher in the short-term, gains may remain limited by other fundamental drivers, such as political risk in Washington. Taking a look at the technical picture, the yellow metal is at risk of slipping lower if prices fail to break above $1360. The price action suggests that the current downside momentum could bring Gold prices back towards $1340. A solid breakdown below the $1340 has the ability to trigger a decline lower towards $1324.15.
Bitcoin hovering around $11000
Bitcoin bulls wasted no time in pushing the cryptocurrency towards the $11000 region during Monday’s trading session.
As prices secure a solid weekly close above $10000, could this be the start of an incredible rebound or another dead cat bounce? Taking a look at the technical picture, all eyes will be on Bitcoin’s behavior at the $10000 level this week. A breakdown below this psychological level may pave a way to further downside. If bulls are able to maintain control, prices could challenge $11500.
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