Daily Technical Analysis on 17 August 2016
Today’s Technical Pairs: EURUSD, USDJPY, Brent- Oil & XAUUSD.
The US dollar sustains to loss the floor, weakening across all other major currencies. The Euro-zone currency was finally adept to crack through a strategic, which takes place in the zone of 1.1995 levels. It indicates that the medium-long term market recurs to the bull trend. The fundamental outlook is favorable toward this.
US consumer price index in July rose 0.1 percent relative to June, below forecast of analysts, who had expected an increase of 0.2 percent. On the contrary, solid data from Europe supported the European currency. The current resistance will be at 1.1322-1.1330 levels, will not be passed quickly, and the market place anticipates a pullback and consolidation in the 1.1195-1.1235 region, the past resistance, right now which acts as a solid support. In the short term, we predict the EURUSD is to gain to the level of 1.1440-1.1500.
Present-day throughout the Asian session, the Yen sustained to gain due to the US dollar weakening. The pair is trading closely an important strategic level of 100. As a conclusion of downward movement the markets place currently under the support level of 100.77. The prospect to go ground seems to be valid, for the loss of the US dollar supports it.
Still, we believe that the USDJPY is affectionate oversold and a psychological level of 99.90-100 will sustain to restrain the downside movement. RSI indicators sign no signal. The moving averages of 50, 100 & 200 are upward in the 4HR chart. The indicators remain neutral.
On Tuesday, Brent crude oil futures testing the level of 48.5 US dollars per barrel, but lost to remain above. Throughout the day the market was also unable to drive superior. There are reasons to anticipate a rollback on the factor of possible profit-taking. In the short term the Brent return to 50 levels is high. From a technical look, the oil enters the high resistance levels 48.50 - 49 dollars per barrel.
The yellow metal situation in the market develops interestingly. It is desirable that the main phase of the current growth in this market is trailing us. In the US reduced rate hike this year is a negative factor for the yellow metal. At the mean time, the gradual return of risk appetite shift into the capital out of the gold market in the stock capitals. Yet from a technical point of view, the yellow metal is trading in the mid-range of 1335-1358 levels and we expect that few times the gold market place will stay in this range. The support levels are in the zone of 1320- 1335.