Technical Analysis 24/4/2017
By Antonis Vasloos
The euro experienced a major breakout Monday, with prices briefly surpassing 1.0900 US for the first time in nearly a month. The EUR/USD gained as much as 2% in the overnight session. It was last seen trading at 1.0842, up 1.1% from the previous close.
Sharp volatility pushed prices well into overbought levels. At the time of writing, a broad pullback from the swing high was already materializing, as the bulls relaxed their advance.
The British pound drifted sideways Monday, as the market continued to consolidate from last week’s swing high north of 1.2900 US. The GBP/USD exchange rate is trading near the 50-day moving average, with prices towing the 1.2800 line. The pair is well supported at the 23.6% Fibonacci retracement. Last week’s swing high continues to offer stiff resistance.
The market lacks momentum for a bold move higher, according to the MACD.
Crude oil recovered some lost ground on Monday, but the broader market remained under pressure after last week’s sharp reversal below $50.00 a barrel. Crude prices were last seen trading at $49.84 a barrel, a gain of 0.5% from the previous close. Prices are dangerously close to the 61.8% Fibonacci retracement. A clean break below that level could leave the contract susceptible to new lows.
WTI prices have been subject to greater volatility as of late. That’s a negative sign in the context of the latest downtrend.
Gold prices opened sharply lower on Monday, with prices reaching a session low of $1,265.51. Bullion has been subject to higher volatility in recent days, as risk-off sentiment returned to the financial markets. The yellow metal’s latest rally stopped short of $1,300.00, with prices reversing shortly thereafter. The breakout failure has lowered gold’s investment appeal over the short-term, with the RSI and MACD showing weak underlying momentum.
At the time of writing, bullion was down 0.7% at $1,275.67.