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Technical Analysis 27-02-2017

February 27, 2017
By Antonis Vasloos
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EUR/USD

Outlook: Slightly Bearish

After a momentous start to the year, the euro is on track for a monthly decline of around 1.4% against the dollar. The EUR//USD has given back all its gains for the year, with February witnessing a pullback from the 1.08, 1.07 and 1.06 regions. The common currency was last trading at 1.0563 U.S.

  • Support (weekly): 1.0492, 1.0420, 1.0348
  • Resistance (weekly): 1.0636, 1.0708, 1.0780

Relative strength is in the low 40s, which is often a bearish sign for securities. Prices continue to trade near the lower end of the 1.04-1.08 range that has largely dictated market conditions since the start of November.

27 - EURUSD

GBP/USD

Outlook: Slightly Bearish

The British pound was on the defensive Monday, as the market pulled back sharply from three-week highs. The GBP/USD exchange rate bottomed out near 1.2390 on Monday, putting it on track for its lowest settlement in a month. Prices were last seen hovering at 1.2424. The pair closed at 1.2556 on Friday.

  • Support (weekly): 1.2386, 1.2304, 1.2211
  • Resistance (weekly): 1.2561, 1.2654, 1.2736

Cable’s outlook remains neutral, although the latest pullback suggests bearish bias is directing the market. Relative strength is below 50, while the MACD has also broken below the zero line.

27 - GBPUSD

 

WTI Oil

Outlook: Neutral

Crude oil broke out of a predictable range last week on route to its highest settlement in 19 months. However, the uptrend ran into fierce resistance near the $55 a barrel mark, a sign the market was approaching a major inflection point.

  • Support (weekly): $53.24, $52.50, $51.65
  • Resistance (weekly): $54.83, $55.68, $56.42

Relative strength is in the low 50s, reflecting WTI’s range-bound trading range over the past three months. The futures price rose 0.3% to $54.17 a barrel overnight Monday after briefly falling below $54.00.

27 - WTI

Gold

Outlook: Bullish

Gold prices look to extend their two-month uptrend this week, as traders continue to eye the psychological $1,300 level. Bullion has rebounded more than 9% since the start of the year and is poised to break higher based on the short-term technical indicators. Price action is gaining traction, with the 20-day simple moving average on a sharp upward trajectory above the 100-day SMA.

  • Support (weekly): $1,237.06, $1,217.23, $1,206.36
  • Resistance (weekly): $1,267.76, $1,278.63, $1,298.46

On Friday, bullion settled at a three-and-a-half month high of $1,258.30 a troy ounce. The outlook remains favourable for continued upside in the short-term

27 - GOLD