Europe’s shared currency extended recovery gains against the US dollar Wednesday, making considerable headway north of 1.18 on the H4 timeframe and shaking hands with 1.19.
EUR/USD, on the H4 timeframe, touched gloves with the underside of 1.18 which, as you can see, held firm as resistance. North of here, voyaging to 1.19 is a possibility, whereas swinging lower from current price could push 1.17 back into the frame and trend line support, taken from the low 1.1254.
The US dollar index kicked off the week on strong footing, eclipsing last Wednesday’s high at 93.80. Price, however, came within striking distance of the 94.00 handle and Tuesday’s high at 94.01, before rotating to 93.60ish levels into US hours.
XAU/USD bulls continue to reign supreme last week, adding more than $74 and stamping out fresh all-time peaks at 1983.1.
With the yellow metal navigating unchartered territory at the moment, this remains a buyers’ market. In the event a pullback occurs this week, traders will likely be eyeballing 1921.0, the all-time peak formed in September 2011, as possible support.
Sterling recorded a tenth consecutive daily gain on Thursday, receiving strong tailwinds amid broad USD weakness. After the US dollar index failed to sustain gains above 93.50, the DXY dropped to fresh 26-month lows ahead of the 93.00 handle, consequently lifting GBP/USD above the key figure 1.30 on the H4 timeframe, as well as Quasimodo resistance at 1.3017