Technical Analysis 14/6/2017
By Antonis Vasloos
EUR/USD: Traders Look for Bullish Breakout
Momentum failed to lift the euro to new highs over the past week, as traders looked for fresh market catalysts to drive prices higher. The EUR/USD has traded within a pre-defined range as a result. However, prices have regained the 1.12 level and are looking for fresh cues to continue higher. Relative strength is approaching bullish territory as the common currency grinds toward the 1.1250 resistance level. By clearing this hurdle, the pair is well on its way to a re-test of 1.13.
GBP/USD: Cable Preserves Recent Rally, but Outlook Remains Negative
Cable caught a favourable tailwind on Tuesday as prices bounced off oversold levels. Although the GBP/USD preserved its 80-pip advance, the pair is now approaching the upper end of the 1-hour Bollinger Band formation. While momentum is clearly on the side of the pound, the near-term outlook remains tainted negative sentiment. Broader market forces also suggest that pound sterling faces an uncertain future.
WTI Oil: Crude Faces Resistance
The outlook on crude has improved somewhat, as prices avoided a deeper fall back toward the May swing low. However, prices are running into a major resistance area near the 61.8% Fibonacci retracement. A failed attempt to breach that level sent West Texas Intermediate (WTI) back toward the $46.00 a barrel handle. The path higher is wrought with several hurdles, giving us a negative view of the market in the short term.
Gold: Death-Cross Signals Renewed Downtrend for Bullion
After a strong start to the month, gold prices have once again failed to live up to earlier momentum. Bullion has been caught in a downward spiral since 7 June after prices failed to breach the psychological $1,300 level. Momentum shifted downward as a result. Price action also weakened considerably, with the 50-day simple moving average (SMA) crossing below the 200-day SMA.