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Technical Analysis 22-03-2017

March 22, 2017
By Antonis Vasloos
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Outlook: Slightly Bullish

The bulls have taken control of the EUR/USD, and are pushing prices beyond a well-defined four-month trading range. Prices exceeded 1.0800 on Tuesday before peeling back below that level. The pair faces a confluence of resistance at the 50% Fibonacci retracement. The pair is well supported at the 38.2% retracement north of 1.07.

Relative strength is giving off bullish signals. Price action is also accelerating, with the 50-day and 100-day simple moving averages on upward trajectories.

Technical Analysis 22-03-2017 EURUSD


Outlook: Overbought

The GBP/USD edged slightly lower on Tuesday, snapping a three-day winning streak. Cable was rangebound below 1.2500 on Wednesday, as prices ran into oversold momentum, which weakened the latest rally. The psychological 1.2500 level could be a stringent resistance test for the pair, which is eyeing the February 24 settlement high of 1.2556. A weak dollar has been the main catalyst behind the rally, and its swift recovery could spell the end of cable’s latest uptrend.

Technical Analysis 22-03-2017 GBPUSD


Outlook: Bearish

Crude prices declined sharply on Tuesday, reaching their lowest settlement in nearly four months and threatening to test the March 14 swing low. Prices have since recovered the $48.00 a barrel mark, but the outlook is tainted by weak momentum and bearish market signals. The March 14 swing low provides a good basis of support. On the upside, immediate resistance is located at the 23.6% Fibonacci retracement, which is currently around $49.00 a barrel.

 Technical Analysis 22-03-2017 WTI


Outlook: Bullish

Gold prices extended their recovery on Tuesday, with prices exceeding the critical 61.8% Fibonacci retracement. A close above this level would lead to a re-test of the trend high north of $1,260.00 a troy ounce.

Bullion has caught a favourable tailwind over the past week, as a divergent dollar continues to fuel buying interest in precious metals. Prices have recovered roughly $50 since March 9 and are poised to continue higher based on recent price action.

Technical Analysis 22-03-2017 GOLD