Daily Technical Analysis on 3rd August 2016
Today’s Technical Pairs: EURUSD, GBPUSD, USDJPY, BRENT- OIL & GOLD.
Personal Incomes comes in at 0.2 percent which did not concur with the forecasts. Personal Spending showed 0.4 percent which met the traders’ anticipations. The dollar stands under pressure against the board. The short term technical scenario looks positive. The pair touched fresh post-Brexit highs. The instrument traded at the roof of its ascending channel on Yesterday. The resistance stands at 1.1270, the support seems in 1.1200 levels.
The indicators stayed within the positive region which indicates the buyers’ strength. In the 4HR chart, the instrument is heading superior over the 50, 100 and 200 Day EMAs. The 50-EMA is crossing the 100-EMA upside directions & surrounding the 200-EMA. The moving average gives a buy signal. The pair currently seems to be moving towards its sudden resistance close to the level of 1.1270. We advised buying on pullbacks.
The positive Construction PMI supported the pair upsides fueling its upward momentum. The concerns above the Fed’s rate hike well balanced with the weak US statistics counterbalance on the dollar. The pound bolstered on the dollar's weakness on Yesterday. The Sterling will grow & left behind the side channel. The pair places a fresh high at 1.3356 levels. The current resistance finds in at 1.3500 levels, the support seems at 1.3300 levels.
The value left the 50 & 100 Day EMAs behind and is surrounding the 200-EMA in the 4HR chart. The 50, 100 & 200 EMAs are neutral. The moving averages are yet neutral and don’t generate any signal. The GBPUSD had a positive day on last day and it has all chances to have the identical one on today. We feel suitable taking short-term long positions. The gauge seems to be moving towards the resistance levels of 1.3500.
The yen grew to the three-week high when the Japanese Prime Minister allowed a fiscal stimulus package. The value is bearish on intraday charts. The USDJPY has been under pressure from earlier week. The pair sustained moving ground & created a lower low at 100.64 levels. The resistance appears in 101.40, the support finds in at 100.40 levels.
The indicators MACD and RSI yet produce sell signals. RSI posted the oversold region. The instrument cracks the 50, 100 & 200 Day EMAs downsides in the 4 HR chart. The moving averages are drifting downwards. The short term outlook is bearish. We consider that this is necessarily a SELL only market at the moment. The closest sellers' target finds in at 100.40 levels. We predict a short-term pullout towards 101.40 levels.
BRENT- CRUDE OIL
The Brent futures are surrounding the 41.40 level. The weakness over the dollar expanded the demand for the oil. The tone is yet negative in the market place. The sellers handled to advance the price from the resistance levels of 42.80 to the fresh session lows at 41.40 levels. The resistance remains in 42.80 levels, the support finds in at 41.40 dollars per barrel.
However, an indicator signs a sell signal. RSI is nearly the oversold region. The 50, 100 and 200 EMAs advanced their declines. All moving averages keep moving ground. We consider the decline will be constant now. The first target level will be 41.40, the other one is 40.00 levels. We do not ignore the growth to 42.80 levels.
The gold stayed at the three-week highs as investors expect since the Fed further signals about a rate hike. The yellow metal had a positive day on yesterday. The instrument is surrounding the resistance 1370 levels. The support stays in 1350 levels. Indicators produced a buy signal. MACD is in the positive zone. RSI approached the overbought region. The value is over the 50, 100 and 200 EMAs in the 4HR chart. The moving average signs a buy signal. The potential targets are in the resistance levels of 1370 & 1400.