Technical Analysis 30/1/2017
By Antonis Vasloos
The EUR/USD opened the week in positive territory, climbing 0.3% to 1.0726. The euro remains in an uptrend versus the greenback, as the pair continues to find strong support above 1.07. The 1.08 resistance area continues to offer the strongest technical hurdle.
The EUR/USD could receive a fundamental boost on Monday in the form of Eurozone sentiment indicators and preliminary German inflation data. Later in the day, the U.S. Commerce Department will report on personal spending and outlays for the month of December.
- Support (daily): 1.0709, 1.0701, 1.0694
- Resistance (daily): 1.0724, 1.0731, 1.0739
The GBP/USD reached a session high of 1.2600 on Monday, as investors looked ahead to an active economic calendar and pair of central bank statements from the U.S. Federal Reserve and Bank of England later this week. The GBP/USD was last seen trading at 1.2571, having gained 0.2% from the previous close. The pair remains in a short-term uptrend, with the monthly high of 1.2673 seen as the next major target.
The GBP/USD is in a short-term uptrend, based on the daily oscillators, although a series of fundamental events this week could alter the pair’s outlook.
- Support (daily): 1.2569, 1.2543, 1.2527
- Resistance (daily): 1.2611, 1.2627, 1.2653
Crude oil stumbled last week and continued lower on Monday, as investors turned their attention to rising U.S. crude output. The West Texas Intermediate (WTI) benchmark for U.S. crude futures fell 21 cents, or 0.4%, to $52.96 a barrel early Monday. The futures contract came within a few cents of setting new 19-month highs last Thursday.
With OPEC making strides toward lowering output, the U.S. shale industry appears to be getting ready to ramp up production. The number of active rigs drilling on U.S. soil rose by 15 to 566 last week, data from Baker Hughes showed on Friday.
- Support (daily): $52.87, $52.77, $52.62
- Resistance (daily): $53.12, $53.27, $53.37
Gold futures declined sharply last week as risk sentiment returned to the financial markets. April gold futures closed at $1,191.10 on Friday, a more than two-week low on the Comex division of the New York Mercantile Exchange. Prices rebounded $4.20, or 0.4%, to $1,195.20 a troy ounce early on Monday.
Bullion was knocked off $1,200 last week. The bears are likely to regain control of the market so long as prices remain below that psychological level. A clean break above $1,200 could lead to a re-test of the January 23 high near $1,220.
- Support (daily): $1,193.95, $1,191.65, $1,190.30
- Resistance: $1,197.60, $1,198.95, $1,201.25