XAUUSD prices saw a minor increase, reaching $2,040 before settling with modest gains. However, the precious metal has since declined and is nearing a three-week low, edging closer to the $2,000 psychological mark. A convincing break below this level could trigger further downside movement.
Analysis and Entry Suggestion:
Given the potential vulnerability below $2,000, a short position could be considered if the price convincingly breaks below this level, anticipating a further slide in XAUUSD prices. Alternatively, a cautious approach might involve waiting for a confirmed reversal pattern before considering a long position.
WTI prices have risen for two consecutive days, buoyed by a significant drawdown in crude inventories in the United States. Brent crude futures sit at $77.89 per barrel, while U.S. West Texas Intermediate crude futures are at $72.60 per barrel.
Analysis and Entry Suggestion:
The bullish sentiment, supported by the drawdown in inventories, might indicate potential further upside. Consider a long position if prices sustain above current levels, with caution around potential resistance levels. A break above these resistances could signal more upward momentum.
The USDCAD pair has seen an uptick, reaching the 1.3400 range but remains below a recent multi-week high. The US Dollar is supported by elevated US Treasury bond yields and is close to a three-week peak.
Analysis and Entry Suggestion:
With the USD's strength and proximity to recent highs, a potential long position might be considered if the pair breaks above recent resistance levels. Conversely, if the price fails to breach these levels and shows signs of reversal, a short position could be considered.
GBPUSD hovered around 1.2710, finding support after a recent dip interrupted a four-day winning streak. The Pound found strength against the USD due to improved market risk appetite, driven by speculation about potential rate cuts by the end of 2024.
Analysis and Entry Suggestion:
Considering the ongoing speculation about Fed rate cuts affecting the USD, a long position could be considered if GBP/USD convincingly breaks above current resistance levels. Conversely, if the pair fails to sustain this upward momentum and shows signs of reversal, a short position might be considered.
Summary:
XAUUSD
XAUUSD initially rose to $2,040 but settled with modest gains before sliding close to a three-week low. A break below $2,000 might lead to further downward movement.
WTI
WTI prices increased for two consecutive days following a significant drawdown in U.S. crude inventories. Brent crude stands at $77.89, and WTI crude at $72.60 per barrel.
USDCAD
The pair touched 1.3400 but remains below a recent high, supported by elevated US Treasury bond yields. The USD is close to a three-week peak.
GBPUSD
GBPUSD found support around 1.2710 after a dip, backed by speculation about potential Fed rate cuts, weakening the USD.
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Paraphrasing text from FXStreet and Reuters all rights reserved by the original author.
