Daily Technical Analysis on 13th June 2016
Technical Pairs: EURUSD, GBPUSD, USDJPY, Brent Crude Oil, & XAUUSD.
The euro got under force when the European Central Bank Governor- Mario Draghi warned the markets that the weak economic develop in the Euro zone might lead to a "long-term losses." EURUSD pair spent almost the overall Friday at the level of 1.1300. The pair consolidated following a sharp reduces that had happened a day before. EURUSD returned to reduces at the American session & ended the week in the danger zone at the mark of 1.125 levels. The resistance lies at 1.1300 levels, the support lies at 1.125 levels.
MACD decreased giving a sell signal. RSI is near by the oversold region. It is also a sell signal too. If we consider selling we would wait for the value to consolidate under Moving Averages-50, 100 & 200 on the 4HR chart. The sellers’ target levels are 1.1200. Otherwise we might see a rebound upwards to 1.137 levels.
The British pound chops down against the dollar due to concerns about the upcoming referendum on this month 23rd. According to Timex/You Gov 43 percent of Britain’s would vote to stand in the union and 42 percent would depart it. The sellers will able to move the pair lower. The quotes reduced & broke the levels 1.4400, 1.4320 & 1.4240. Subsequently breaking the mark level of 1.4240 the pound retuned some of its losses & ended the trading week at the level of 1.4253. The resistance level was 1.4320, the support level was 1.4240.
MACD decreased signs a sell signal. RSI is in the oversold region. The value broke Moving Averages of 50, 100 & 200 on the 4HR chart. It is also a sell signal. The value is near by the strong support at 1.415 levels on the daily chart.
The yen is under force on the eve of Japanese & the US Central Bank conference. The referendum in the GBP is another source that pressured the yen. We consider that the industrial production & retail sales report in China might well set the tone for trading in this week. The yen spent earlier Friday at the level 107.00. The pair stayed in a range between levels of 106.60 & 107.30. The resistance remains at 107.00 levels, the support remains at 106.00 levels.
MACD signs a convergence that means a strong reversal signal. RSI is yet near by the oversold level of 30. The USDJPY is yet oversold & we expect a reversal. Once we smash over the 107.00 level, we consider that the 108.00 will be the next level.
Brent – Crude Oil
Brent fell following touch almost a yearly high on last week. The correction appeared due to the strengthening of the dollar. Moreover, refineries & supply disruptions from Nigeria yet support the oil. The oil quotes blocked their growth. The Brent reduced & broke a few of levels on its way: 52.50, 51.50. The oil futures finished the week at the mark level of 50.50. The resistances are at 51.50 levels, the supports are at 50.50 levels.
MACD signs a sell signal. RSI is yet near by the oversold level of 30. The Brent quotes clogged at the 50days Moving Average that did not let the Brent to cut down. The Brent shows oversold & might slow down its reducing. The quotes shall wait for fresh movers, such as the Fed meeting results & Weekly Crude Oil Stock report. The Brent has good chances to rebound. If the quotes rebound they will move back to 52.50 levels. If the values advance lower level of 50.50 the decrease will be constant.
Low anticipations that the US regulator will raise the rate this month supported the gold previous week. The gold quotes sustained the improved on Friday. The futures spent the Asian session in an alteration that finished at the European one. The yellow metal was growing & almost touched the resistance levels at 1280. The resistance stays at 1280 levels; the support stays at 1260 levels.
MACD improve on Friday shows a buy signal. RSI is in the overbought level of 70. It shows a sell signal. The value is over the Moving Averages of 50, 100 & 200. The gold is near by the strong resistance level of 1280 on the daily chart. Likewise the gold is overbought. The metal might start an alteration soon. The sellers’ target is the mark of 1200 levels. However we advised staying away from trading ahead the situation regarding the US rates becomes fair. The yellow metal futures might keep growing if the Fed departs the rates unmodified.