The EURUSD continues to trade below the key 1.30 level. Currently the rate of exchange is at 1.2950, hovering around 14 month lows. Since the open of the new week the pair has posted a high of 1.2959 and a low of 1.2931. As seen in the chart above the pair has aggressively breached the downtrend channel and is trading below the trendline. This could signal further losses for the pair, but be warned that this kind of setup may lead to a sudden correction back into the trendline channel. Also described as a return to the mean. The next key support line is to be found at 1.2745 followed by 1.2550. On the upside resistance levels are at 1.30, followed by 1.3165.
The cable has come off its highs of 1.7150, set on July 15th this year. The pair is trading at 1.6135 and is down by 200pips since Friday's close, equating to a 1.3% decline. The pound has been pressured by the referendum taking place in Scotland to decide whether the country will become independent and with a view to Scotland no longer using the British sterling pound as its currency. Generally the pair has been trending down, off by around 6% in the last 2 months. GBPUSD may find strong buying support at 1.6050 and then at 1.60000. A consolidated breach of the 1.60 level will be a strong bearish signal. Resistance levels will be at 1.6250 and 1.6365.
Crude Oil has been whipsawed up and down by political events involving key producer countries. Russia and Ukraine agreed on ceasefire at the NATO Summit in Wales which evidently has not held up as per the latest developments. Tensions have been rising and the likelihood of US involvement in combating ISIS has increased, raising the geopolitical risks in the Middle East region, which is a large energy hub. Seen in the chart above is a classic Head and Shoulder pattern which looks to be confirmed by a sell signal. Although the price will need to continue falling before it is confirmed from a technical analysis standpoint. The current price in the market is 92.50 down over $1 from the close on Friday. The next key support area is a $91.00 per barrel followed by the psychological $90 a barrel mark. On the upside resistance levels are to be found at $93.50 and $95 a barrel.