Daily Technical Analysis on 4th August 2016
Today’s Technical Pairs: EURUSD, GBPUSD, NZDUSD, USDJPY & GOLD.
The dollar grew against a box of its key peers on last day. The US currency stands nearly the five-week lows as the markets place are uncertain even if the Fed will raise the rate or not this year. EURUSD had a negative day on yesterday. The pair traded in the upward channel & surrounded its lower limit. The resistance remains in 1.1200, & the support levels 1.1130.
MACD indicator shows a diversity which is a sell signal. RSI exit the overvalued zone & is driving downwards. In the 4HR chart, the gauge is drifting towards the 50, 100 and 200 Day EMAs. The 50-EMA is overpassing the 100-EMA & the 200-EMA. The moving average gives a buy signal. We consider the pair will resume its decline & will reach 1.1130 levels.
The pound sluggish after the Services PMI meets the traders’ anticipations. The instrument stayed near to the local highs. The value traded over the level 1.3300.The current resistance finds in 1.3500, the support lies in 1.3300 levels. The price traded under the 200-EMA in the 4HR chart. At present the 200-EMA acts as a resistance. The 50, 100 and 200 EMAs remain neutral in position. GBPUSD looks bearish & might return under the 1.3300 levels. In this outlook, sellers will force the pair down to 1.3100 levels.
In financial news, Labor cost index added 1.6 percent vs. forecasts of 1.8 percent in New Zealand. The kiwi deals with a downside pressure & ended bearish on Wednesday. The lowest trading values are 0.7140 levels. The resistance levels are 0.7250, the support remains at 0.7150 levels. Indicator RSI is in the neutral region but the oscillator is declining. In the 4HR chart there is a cross-over on the Moving Averages. The 50, 100 and 200 EMAs driving is upwards. We hope the market would shift the tone to bearish. The pair might partly twist its last day's losses, but it will regain its downside trajectory afterwards. The sellers’ target is 0.7050 levels.
The yen weakened after the BoJ’s minute’s releases. The controller plans to assess the cause of the negative rates on the economy. Traders forced the dollar higher in the USDJPY pair. The pair is trying to form a breakout at the resistance level 101.40; the support stands in at 100.40 levels. The instrument clicked the 50-EMA in the 1HR chart. The 50, 100 and 200 Day EMAs are directing downsides. We predict the 101.40 line crack that will unlock the path for the buyers to 102.50 levels.
The yellow metal remained positive amid reduce in expectations that the Fed will raise the rate in near-term. The XAUUSD pair stands neutral throughout the day and cut down in the North American session. The session low was marked at the level of 1353.52. The resistance appears in 1370 levels, the support remains in 1350.
Indicators produced a weak buy signal. Indicator RSI exits the overbought region & is moving downsides. The moving averages kind of modified from Tuesday. All eyes are currently the support level of 1358. If this support will crack, the value might fall towards 1350 levels.