A strong test of the trendline resistance in EUR/USD could be on the cards.US Dollar is pressured and gives EUR bulls an advantage from daily support.EUR/USD bull’s eye a strong continuation on the correction to the 38.2% Fibonacci 1.0900 and then1.0920s as the 50% mean reversion area.
EUR/USD daily chart
The case for the downside will build when we see a deceleration of the correction which might still be in its initial days.
EUR/USD H4 charts
However, there are prospects of a move lower on the lower time frames, such as the H4 chart above and the H1 chart below:
EUR/USD H1 chart
With all that being said, however, the daily chart remains biased to the upside:
A 38.2% Fibonacci correction comes in near 1.0900 and 1.0920s and thereafter sees the 50% mean reversion area that would make for a strong test of the trendline resistance.
EUR/USD holds above 1.0850, still vulnerable
EUR/USD has staged a rebound and stabilized above 1.0850 on Monday after suffering heavy losses late last week. The recovery from monthly lows was limited, as the Euro still seems vulnerable. The common currency was among the worst performers in the G10 space.
GBP/USD consolidate gains above 1.2520
GBP/USD erased Friday’s losses and rose above the 20-day Simple Moving Average. It is consolidating above 1.2500, supported by US Dollar weakness and a modest improvement in risk sentiment. EUR/GBP posted the lowest daily close in five months.
Gold: XAU/USD grinds higher on easing USD demand
Spot gold trades with modest gains at around $2,020 a troy ounce in a slow start to the week. XAU/USD advances amid easing US Dollar demand amid a better market mood.
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