Technical Analysis 06-03-2017
The EUR/USD is consolidating in a familiar range on Monday after being pulled toward two-month lows last week. The euro was last seen trading at 1.0602 U.S.
The pair has moved back above the 23.6% Fibonacci retracement on the 1-hour chart, completing a 1% bounce from the March 2 swing lows that was also associated with oversold levels on the CCI oscillator. On the upside, the swing high near 1.0627 is the major resistance.
The British pound has declined 300 pips against the dollar over the past five sessions and is currently trading near its lowest level in six weeks. The GBP/USD has been in a sharp downtrend since the February 24 swing high around 1.2550. The 1-hour chart showed an earlier convergence on the upper end of the Bollinger Band just above 123.00.
The stochastic oscillator continues to point to weak underlying momentum, with prices hovering just above oversold levels.
Crude oil continues to hover within a pre-defined trading range between $51.00 and $55.00 a barrel. The upper end of the range has served as a major resistance, with prices breaching that level only once since the recovery began all the way back in early 2016.
WTI was last down 0.4% at $53.10 a barrel. The outlook is neutral-to-bearish, with the daily RSI and stochastic indicator hovering near oversold levels. A sustained fall below $53.00 could trigger a short-term reversal for the U.S. benchmark.
Gold prices are in a sharp downtrend, having declined over $30 from the February 24 swing high near $1,264.00 a troy ounce. Bullion tested near-term support at $1,225.00 on Friday, but has since recovered near the 50-day moving average. The April futures contract was last up 0.6% at $1,233.50 a troy ounce.
Bullion is fresh off its first weekly loss of the year. Despite the decline, the $1,200 level remains the price floor on the two-month uptrend.