USD hits the lowest level in almost two-years

EUR/USD Rises To A Fresh 22-Month High

The euro currency rose to a new 22-month high after prices rose to intraday highs of 1.1781.

The rapid appreciation in the euro comes as the dollar turns weaker. EURUSD has been in a steady uptrend and has gained almost 3% in a matter of just seven days.

The parabolic rise in the euro however puts focus on a possible correction. If price can close above the 1.1750 handle, then we expect EURUSD to potentially target the 1.1800 level next.

But given the upcoming FOMC meeting later this week, the euro could be at risk in the event that the dollar rebounds.

GBP/USD Pushes Close To A 5-Month High

The Pound sterling is also lifted by a weaker greenback. Price action rose to nearly a 5-month high on Monday.

On an intraday basis, GBPUSD pushed toward 1.2902 before pulling back slightly.

Given the current momentum, GBPUSD could be looking toward the 1.3000 handle in the near term. Above this level, price will challenge the resistance level at 1.3122.

A move to this level will, however, see GBPUSD erasing the Covid-19 led declines since March this year.

Crude Oil Slips On Weaker Demand

Oil prices are trading below the 41.00 handle at the time of writing. The commodity is down over 1.5% intraday. Even a weaker USD has failed to lift oil prices higher.

The declines come amid concerns of weaker demand. If oil prices close below the 41.00 level, then we expect further declines.

Alternately, a close above the 41.00 level could keep price action ranging. The next lower support is at the 37.5 – 38.00 level in the event of a downside breakout.

The minor rising trend line might provide some dynamic support for prices in the near term.

Gold Surges Ahead To Post A New All-Time High

The precious metal surged ahead as it hit a new all-time high record. Gold prices rose to intraday highs of 1945.52 as it continues its bullish momentum.

The gains come amid fears of economic recovery as well as more stimulus packages around the world.

In terms of a technical support, given the sharp gains, there are none. Therefore, price action is likely to carve out some form of support near the current levels.

For the moment, the only key level is seen at the 1850 handle.