Technical Analysis 03-03-2017
By Antonis Vasloos
The euro extended losses below 1.06 U.S. on Thursday, as long-term positioning continued to favour the bears. The EUR/USD has limited upside, as the sellers continue to push price levels toward the lower end of the 1.0400 – 1.0800 range. Price has broken sharply below the 50-day simple moving average, confirming an imminent downtrend.
- Support: 1.0482, 1.0457, 1.0422
- Resistance 1.0542, 1.0577, 1.0602
The pair is trading at the lower end of the Bollinger Band, and a break below 1.0500 could trigger a short-term bounce back toward predictable levels.
The GBP/USD broke below a key trendline earlier this week to settle at its lowest level since January. The pair ended Thursday’s session at 1.2268, having declined roughly 300 pips over the past week. Sterling is eyeing immediate support around the 1.2240 region, and a breakdown below that level would expose yearly lows around 1.2040.
- Support: 1.2236, 1.2204, 1.2168
- Resistance: 1.2304, 1.2340, 1.2372
The pair is trading below the 50-day, 100-day and 200-day simple moving averages. Long-term, price action is extremely weak and becomes moderate-to-flat over the 50-day and 100-day periods. Measures of short-term momentum like the RSI indicate sterling is approaching oversold levels.
Crude oil tanked on Thursday, plunging to its lowest level in three weeks as fatigued buyers lost their grip on the market. West Texas Intermediate (WTI) futures plunged more than 2 % to settle at $52.61 a barrel.
- Support: $52.16, $51.72, $50.90
- Resistance: $53.42, $54.24, $54.68
Prices broke out of a three-month range last week and appeared poised to extend their rally toward $55.00 a barrel before bearish pressure stopped the uptrend in its tracks. With the last move lower, WTI remains rangebound for the foreseeable future.
Gold prices have declined more than $20 this week, eroding confidence in the shiny metal after two months of solid gains. The downward correction may still not be over, as bullion makes its make its way down toward a key technical support below $1,220.00.
- Support: $1,225.86, $1,219.83, $1,208.96
- Resistance: $1,242.76, $1,253.76, $1,259.66
The yellow metal was last trading at $1,234.30 a troy ounce. The gold-dollar divergence could strengthen over the short term as investors eye market developments that could influence supply and demand for either security.