Slight declines on the EURUSD during Asian trading on Friday followed gains made since early this week. Despite the pair’s gains, it has retreated from the 1.1878 resistance points; considerably an important resistance point, and the breach of these points will reinforce the bullish process. But a drop below the support at 1.1825 would affect the recent uptrend causing the market to enter a sideways movement
The Sterling rose today following a one-week high yesterday. However, the sharp drop yesterday, following the high, could turn it into gains by the end of the Session following Brexit developments.
Despite the recent gains in prices, the GBPUSD pair still has to break above stability levels at 1.3290 to confirm the continuation of the uptrend. A drop below the near support at 1.3270 would affect the recent uptrend causing the market a sideways movement.
The US Dollar fell against the Japanese Yen on Friday for a fourth session in a row following the demand for the safe haven currency increased, as tensions persisted in the financial markets.
According to the chart, we see that the pair is moving within a bearish triangle over the four hour period and further declines on the pair would likely break the stability.
A movement below the support level at 111.95 will confirm the technical pattern and likely cause further declines. The breach of the resistance points close to 112.25 would affect the bearish trend causing the market to proceed to a sideways movement.
Gold prices rose during the Asian session to trade near the highest level in two weeks. This comes in light of the decline in the levels of the Dollar, which helped commodity prices rise before the release of Inflation Data from the US Economy.
On the other hand, Gold found further support amidst current political tensions in the markets as Spain’s Catalonia secessionist crisis continues to worsen Investors’ confidence levels, as well as the continued escalation between the US and North Korea.
Despite recent market rallies, prices still have to break above stability levels at 1297 to confirm the continuation of the uptrend. A drop below the near support levels at 1292 would affect the recent uptrend and cause the market to enter a sideways movement.
Crude Oil prices rose during Friday’s trading, supported by data from the Chinese Economy, which showed higher than expected Imports. The rebound in the commodity’s demand consolidates the previous bullishness. The success of the price to breach the close resistance levels at 50.95 will enhance the optimism and possibly push the price test to 51.37.
Only a return of prices below the 50.75 resistance level would temporarily ease the bias.