Market sentiment slips on dovish Fed and second wave of pandemic

EUR/USD Struggling To Get A Handle Over 1.1400 Level

The euro currency briefly touched the elusive 1.1400 handle earlier on Thursday.

But prices pulled back quickly suggesting that sellers are in control.

Also, given the fact that EURUSD is on a strong bullish streak, a pullback is normal.

For the moment, the price level near 1.1347 will be key. A close below this level might suggest further declines.

The next minor support is at 1.1261. Only a strong breakdown below this level can accelerate the declines down to 1.1132.

Is GBP/USD Heading For A Correction?

The British pound sterling finally broke the minor rising trend line.

This evidently saw prices breaking the medium-term trend line as well.

For the moment, prices are trading just below the key level of 1.2643.

A strong close below this level is needed to confirm further declines.

The next downside target is at 1.2516 marking the 4th June lows in the uptrend.

And a close below here will send prices down to 1.2343 where support will be coming under test next.

Oil Prices Dip Amid A Possible Correction Underway

Oil prices are down over 8% intraday on Thursday. The commodity briefly made an attempt to push higher but it only resulted in a lower high forming.

This eventually saw oil prices breaking past the initial support at 37.67.

The close below this support is now putting pressure on oil prices.

We expect the declines to send oil prices toward the 34.42 level where support will be most likely tested.

A rebound off this support area will, however, keep prices range-bound within the 37.67 and 34.42 levels in the near term.

Gold Prices Catch A Bid, But Can Prices Move Higher?

The precious metal is trading mixed after prices recovered above the 1724 level.

Overall, price action in gold remains quite volatile. As a result, the bias is also somewhat mixed. The focus is back on the 1724 level.

A close below this price point will see gold extending declines back to the 1700 level.

Given the psychological importance of this round number, we expect that prices will hold up in the near term.

But a close below 1700 will see a firm move lower to the 1671.95 handle.

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