Technical Analysis 17-02-2017
By Antonis Vasloos
The euro pushed higher the U.S. dollar on Thursday, although the gains were largely attributed to weakness in the latter currency. The common currency settled at a one-week high of 1.0677 U.S. on Thursday, having gained 100 pips over the previous two days.
- Support (daily): 1.0612, 1.0551, 1.0516
- Resistance (daily): 1.0708, 1.0743, 1.0804
The latest move higher was predicted after the pair touched the lower end of the Bollinger Band, triggering oversold conditions. Despite the rally, the EUR/USD remains exposed to downside pressure, and is trading within a long-term range of 1.0400-1.0800.
The British pound remains largely range-bound against the dollar, as the pair continues to pivot the 1.2500 handle. Prices have barely fluctuated above or below that level for the past two weeks. The GBP/USD was last trading at 1.2503. Its technical outlook has not changed, with relative strength holding in the neutral 50 territory and the MACD on a steady downward trajectory toward the zero line.
- Support (daily): 1.2451, 1.2413, 1.2375
- Resistance (daily): 1.2527, 1.2565, 1.2603
The pair is trading in between the 20-day and 100-day EMA. Its outlook remains non-committal, as investors eye fresh trading catalysts.
Outlook: Neutral/Slightly Bullish
Crude prices rose on Thursday, but were on track for a weekly decline after the bulls failed to extend the previous rally above $54.00. The West Texas Intermediate (WTI) contract for U.S. oil futures rose 34 cents, or 0.6%, to $53.42 a barrel on Thursday. It was little changed Friday overnight.
- Support (daily): $52.83, $52.30, $51.92
- Resistance (daily): $53.74, $54.12, $54.65
The futures contract is trading above its 20-day simple moving average, although weak underlying momentum and declining trading volumes suggest prices will continue to be range-bound for the foreseeable future.
Gold resumed its year-long uptrend on Thursday, with prices hitting fresh three-month highs on the combination of technical trading and wavering risk sentiment. The yellow metal rose $7.00, or 0.6%, to $1,240.10 a troy ounce, a new settlement high for the year.
- Support (daily): $1,235.24, $1,230.47, $1,227.74
- Resistance (daily): $1,242.74, $1,245.47, $1,250.24
Bullion is in a firm uptrend, and appears poised for further gains, based on the MACD oscillator. Price action is also strengthening, with the 20-day simple moving average converging on the 100-day SMA.