Technical Analysis 29/5/2017 -EUR/USD GBP/USD
By Antonis Vasloos
EUR/USD: Dollar Recovery Undermines Euro Rally
After a month-long rally, the EUR/USD finds itself back below 1.12 as part of a broad consolidation trend. The pair is currently trading nearly 100 pips below last week’s swing high north of 1.1250, a level not seen since last fall. The common currency’s decline was accompanied by rare gains for the US dollar, which has rebounded from more than seven-month lows against a basket of other major currencies. The euro remains well supported in its current trading range, but faces declining momentum based on the MACD.
GBP/USD: Cable Hits Monthly Lows After Rejection at 1.30
Cable’s fortunes quickly reversed last week after repeated attempts at 1.30 were quickly turned away. A subsequent 200 pip collapse pushed the pair deep into oversold levels, according to the Relative Strength Index (RSI) and 1-hour Bollinger Band formation. The pair is trading above 1.28 after crashing below that level last week. The outlook is tilted to the downside as traders look for fresh catalysts.
WTI Oil: Crude Prices Regain Momentum After Volatile Selloff
Crude prices were back on the offensive Monday, with prices edging toward the psychological $50.00 a barrel plateau. US West Texas Intermediate (WTI) futures plunged below $48.50 a barrel last week before quickly rebounding toward the 23.6% Fibonacci retracement. A settlement above that level would lead to a rally back toward the 24 May swing high at $52.00 a barrel.
Gold: Bulls Take Control of the Market
Gold’s quest for a 100% retracement of the 13 April swing high took another step in the right direction Friday after the metal closed above thee 61.8% Fibonacci level. Following a brief run in with overbought resistance, bullion remains supported above that critical level as the bulls set their sights on bigger gains. However, the yellow metal may face fresh resistance from the US dollar, which is riding a two-day winning streak against a basket of other major currencies.