USD weakens, closing lower for the week

EUR/USD Rises For The Third Consecutive Session

The common currency is posting a steady gain against the US dollar as price closed in the green for the third session in a row.

This comes after EURUSD fell to the support area near 1.1714 earlier in the week.

However, the previous highs were met with the resistance off the trend line. But price action is drifting back near these levels.

EURUSD is still a few pips off the previous highs near 1.1900. A close and a breakout above this level will confirm the uptrend with the next target at 1.2000 level.

The downside looks limited for the moment as long as the 1.1714 support holds up.

GBP/USD Drifts Lower After Failing To Clear Resistance

The British pound sterling managed to post modest gains into Friday’s close.

Price action rallied towards the 1.3122 resistance level. Failing to clear this level, the cable ended the session on a somewhat weaker note.

It is clear that GBPUSD has established a sideways range between the 1.3122 and 1.3000 levels. We expect this range to hold in the near term.

Given the weakness in the US dollar, the cable might just be able to breakout higher from this sideways range.

Within the overall uptrend in GBPUSD, this sideways pattern is showing signs of a pause to the uptrend.

Therefore, the direction of the breakout from this range will prove to be critical for the uptrend in the near term.

WTI Crude Oil Maintains Its Hold Near 42

Oil prices continue to remain in a holding pattern. Price action fell back to the 42.00 level and oil managed to close slightly higher above this level.

This week’s OPEC meeting might help oil prices to gain some momentum.

To the downside, below the 42.00 level, we could expect to see prices trading flat. This will mean that the range between 42.00 and 41.00 will be in play.

On the other hand, to the upside, a continuation above the 42.00 level is needed.

Therefore, a close above 43.00 thereafter will potentially confirm the upside with the next target coming in at 45.00.

Gold Prices Turn Bearish For The First Time In Nine Weeks

Price action in the precious metal is showing a slowdown in the pace of gains.

Following nine weeks of gains, gold prices ended the week on a bearish note.

While price has managed to rebound off the lows near 1875, it has yet to breach the resistance level near 1967.

A close above 1967 is needed to confirm the upside. We expect price action to remain trading soft within these levels for the moment.

Above the 1967 level, the previous highs near 2070 will prove to be critical in the near term. This is if gold has to maintain its gains.