Technical Analysis 27/1/2017
By Antonis Vasloos
The EUR/USD fell below 1.07 on Thursday, as the dollar recovered from one-month lows against a basket of world currencies. The pair fell 0.7% to settle at 1.0681, and was little changed in the early hours of Friday.
The EUR/USD is trading above the 20-day simple moving average, a sign that price action was accelerating. Momentum is also strengthening, with the RSI holding in the mid-50s. It had spent the better part of December near oversold levels as the dollar touched nearly 14-year highs.
- Support (daily): 1.0635, 1.0589, 1.0523
- Resistance (daily): 1.0747, 1.0813, 1.0859
The British pound fell from six-week highs against the dollar on Thursday, as investors booked profits and turned their attention to a deluge of U.S. economic reports in the week’s final session. The GBP/USD exchange rate tumbled 0.7% to 1.2582. The pair was little changed Friday morning.
The short-term bias remains tilted to the upside, as markets await new developments concerning Brexit and U.S. monetary policy.
- Support (daily): 1.2538, 1.2483, 1.2412
- Resistance (daily): 1.2664, 1.2735, 1.2790
Nymex crude futures approached 18-month highs on Thursday, as major oil producers continued to scale back production in the wake of landmark output deals in the final month of 2016. West Texas Intermediate (WTI) surged $1.08, or 2%, to $53.78 a barrel. That puts the U.S. benchmark within striking distance of the January 6 settlement high of $53.99. Brent crude, the international futures benchmark, also added $1.15, or 2.1% to $56.23 a barrel.
WTI was trading slightly higher Friday morning to trade at $53.86 a barrel.
- Support (daily): $53.02, $52.26, $51.75
- Resistance (daily): $54.29, $54.81, $55.56
Gold futures recorded their third straight down session on Thursday, as risk appetite continued to undermine demand for precious metals. Prices fell $9.10, or 0.8%, to settle at $1,191.40 a troy ounce. The yellow metal declined another 0.5% overnight to reach $1,186.60 a troy ounce, a more than two-week low.
Bullion is on track for its first weekly decline of 2017. Prices could experience heavy volatility Friday morning as markets respond to U.S. GDP and durable goods orders.
- Support (daily): $1,183.50, $1,177.50, $1,169.40
- Resistance (daily): $1,197.60, $1,205.70, $1,211.70