Technical Analysis 20-02-2017
By Antonis Vasloos
The euro rebounded sharply from monthly lows last week, but is showing signs of topping as investors look to re-establish short positions. Despite climbing more than 100 pips in the latter half of the week, the pair still exhibits neutral momentum based on the RSI and MACD.
- Support (daily): 1.0609, 1.0594, 1.0582
- Resistance (daily): 1.0636, 1.0648, 1.0663
The EUR/USD is trading below its 100-day simple moving average. A clean break above this level is needed to support the pair’s next leg higher.
Outlook: Neutral/Slightly Bearish
The British pound’s steady streak may have eroded on Friday after it fell 69 pips to close at 1.2420 U.S. That was the currency’s lowest settlement in a month. The near-term outlook remains mixed, as investors await new trading catalysts. However, the latest move lower is a sign that sterling is facing bearish pressure.
- Support (daily): 1.2411, 1.2393, 1.2378
- Resistance (daily): 1.2444, 1.2459, 1.2477
The GBP/USD is approaching the lower end of the Bollinger Band, which means a short-term reversal may be in play.
U.S. West Texas Intermediate (WTI) futures ended a volatile week in a familiar range, as prices continued to hover between $53.00 and $54.00 a barrel. The longer-term range is between $51.00 and $54.00, as the futures contract continues to consolidate after a prolonged uptrend in 2016. WTI was last seen hovering at $53.43 a barrel.
- Support (daily): $53.79, $53.76, $53.74
- Resistance (daily): $53.84, $53.86, $53.89
Crude prices remain in a neutral range, with prices well supported above the 100-day EMA. Relative strength is in the low 50s, confirming our neutral short-term outlook.
Gold futures settled just below three-month highs on Friday, as demand for risk-off assets remained firm after a highly active week. The April futures contract trading at $1,235.20 a troy ounce overnight Monday, where it maintains a bullish bias based on the short-term oscillators.
- Support (daily): $1,234.31, $1,233.48, $1,232.96
- Resistance (daily): $1,235.66, $1,236.18, $1,237.01
Bullion is in the midst of a seven-week uptrend, with prices inching closer to the 200-day simple moving average. A break above this key level could bring November highs of around $1,300 back in play.