Daily Technical Analysis on 3rd January 2017
Today’s Technical Pairs: EURUSD, GBPUSD, USDJPY, & XAUUSD.
The euro rallied among profit-taking on last weekend. Still, the US dollar stayed solid on expectations that latest Trump's fiscal policy will improve inflation & will amplify chances of the Fed's rate hikes in 2017. Bulls temporally return in market. The euro unlocked green across the dollar on last week. The price rallied & cracks the 1.055 levels, 1.060 levels in the Asian session. The currency pair met a wall at 1.065 levels which ignored it downwards. The solitary European currency sharply goes down after testing the level & comes back into 1.055 regions afterwards.
The value smashed into the 50 & 100-EMAs upwards in the 4Hr chart & tested the 200-EMAs in the previous trades. The euro lost to regain the 200-EMAs and rebound from the moving before the US session opening. The 100 & 200-EMAs kept pointing lower although the 50-EMA remains neutral. The resistance finds in 1.055 levels, the support comes in 1.050 levels. RSI indicator remained close to the overvalued region, supporting a fresh move lower.
Even though, a thin market the pound had a positive day on yesterday. The most important recovery was limited as the dollar was solid on expectations that the US controller would keep its policy tightening in 2017. The pound extensive its bounces back from the latest lows on previous day. Buyers smashed the 1.23 levels with London session opening and superior towards 1.24 levels. The upward momentum washed out around the level.
According to the 4Hr chart the value tested the 50-EMA. The 100-EMA intersects the 200 EMA downwards. The moving averages handled their bearish slope. The resistance lies at 1.24 levels, the support appears at 1.23 levels. MACD indicator was at the neutral in position. If the histogram returns the negative region, that will signs seller’s strength. If MACD moves into the positive zone the buyers will take the market control. The RSI indicator gone the neutral areas & headed upside.
The dollar held a bullish tendency on last weekend as investors were set up for the New Year holidays & began to close their short positions. USDJPY stayed in bulls' control. The US dollar unlocked green against the yen & complete its upside desire in the European session. Buyers led the value from the latest lows at 116 levels to 117 levels. The pair reached the level in the mid-Europe session but lost to crack it.
The price rebounds from the 100-EMAs & surrounded the 50-EMAs in the 4Hr chart. The 100 & the 200-EMAs directed higher although the 50-EMAs twisted lower. The resistance seems at 117 levels, the support exists at 116 levels. MACD indicator traded to the downwards. RSI disappear oversold zone & moves into the neutral region.
The yellow metal upturns stalled around 1160 levels. The metal lost it’s upwards momentum among renewed greenback buying attention. Following a brief consolidation phase in the early European session the value left 3 weeks highs & leisurely headed downwards. The metal broke the 50 & the 100-EMAs upwards in the 4Hr chart. The 100 & 200-EMAs handled their bearish slope although the 50-EMAs twisted higher. The resistance remains in 1160 levels, the support stands in 1150 levels. MACD histogram reduced which hints seller’s is growing strength. RSI oscillator consolidated within the positive areas.