Technical Analysis 12/4/2017
By Antonis Vasloos
The EUR/USD has completed its downward consolidation pattern and appears to have consolidated in the 1.06 range. Low trading volume in a holiday-shortened week is likely to keep price action at a minimum. Prices are currently hovering between the 50-day and 100-day moving averages.
The pair has moved higher in a series of incremental steps over the past week. ATR-measured volatility remains low, confirming our neutral position for the time being.
Recent movements in the GBP/USD have been sporadic. Prices declined sharply last week before recovering near the 1.25 handle. The pair has found support near the 1.2425 region, although a breakdown below that level is likely as the pair struggles to build upward momentum.
The latest recovery has pushed the pound into overbought levels, adding to the view that a downward correction is in play.
WTI has continued to gain ground this week, with prices pushing above the 61.8% Fibonacci retracement. The contract is now eyeing the February high north of $55 a barrel. On the downside, prices are well supported at the 61.8% and 50% Fib levels.
Crude has been in a perpetual uptrend since the last week of March, a sign that the market has established a reliable near-term bottom.
Gold prices broke out of a major resistance area on Tuesday, paving the way for a re-test of the November trend high. Bullion spiked 1.6% to reach the $1,275.00 region, its highest level of the year. In the process, the yellow metal has moved into overbought territory, based on an analysis of Bollinger Band and 1-hour Stochastic Indicator. This suggests a consolidation is in order as the bulls catch their collective breaths from the market-driven rally.