Technical Analysis 2/6/2017 -EUR/USD GBP/USD
By Antonis Vasloos
EUR/USD: Looking for Direction Below Yearly High
Technical traders have favoured the euro in recent weeks, but a stalled rally against the dollar is breeding uncertainty about the direction of the common currency. The EUR/USD approached year-to-date highs on Thursday, but ran into resistance near 1.1250. The pair’s technical properties signal limited upside potential over the short-term. Fading relative strength readings point to a flat outlook for the time being.
GBP/USD: Cable Capped Below 1.29 After Volatile Week
The British pound broke lower this week and struggled to regain its footing, an outcome that was widely expected after cable failed to break above the psychological 1.30 barrier. The GBP/USD is consolidating around 1.2875. It faces immediate support near 1.2910, which represents the upper limit of the Bollinger Band. Sterling, like other currencies, is also susceptible to a firming US dollar ahead of key market-moving events.
WTI Oil: Crude Prices Enter into Bearish Territory
Volatility and fake rallies have underscored crude prices in recent sessions. US West Texas Intermediate (WTI) bottomed out near an established swing low on Thursday, offering little doubt that the contract is facing bearish pressure. The market turned sour last week after the 20-day simple moving average crossed below the 100-day SMA. Prices are toeing $48.00 a barrel at the time of writing, with a further breakdown likely.
Gold: Bullion Faces Downside Risk
The outlook on bullion has turned neutral despite a string of higher highs in through Tuesday. Gold prices are testing immediate support at the 23.6% Fibonacci retracement. As prices slowly dip below that level, a bearish picture is emerging. Following a breakdown of the immediate support level, the yellow metal is likely to target the familiar $1,250.00 region. On the upside, the high from 30 May is the immediate zone of resistance.