Daily Technical Analysis on 18th January 2017
Today’s Technical Pairs: EURUSD, GBPUSD, Brent-Crude Oil, & XAUUSD.
Economic Sentiment in Germany for January dissatisfied investors. The market now focused on Consumer Price Index in Germany & the EU. We consider that this is basically a “buy only” market at the time. The pair stayed in a short term upward channel on last day. Bulls kept organize & forced the value higher in the Asian session. The euro rallied & cracks the 1.065 levels in the mid-Asian hours. The solitary European currency extended its growth afterwards & touched 1.070 levels in the mid-European session.
In the 1HR chart the value bounced off the 100-EMAs & crossed the 50-EMAs upside. The value remained over the moving averages which handled their bullish slant in the same timeframe. The resistance is at 1.070 levels, the support comes at 1.065 levels. MACD histogram grew which signs buyers’ strength. RSI oscillator left the neutral zone & comes back into the positive region.
All eyes are on Unemployment Rate & Average Earnings where we look ahead to green numbers. Bulls were steadily gaining more on the whole control on last day. A sharp near-term rally assists the Cable to lock Monday's gap. The pound smashed 1.210 levels in the Asian session & reached 1.220 levels before the European open. The sterling momentum began to become paler after testing the levels. The value rolled back, but stayed around 1.220 levels.
The value grew & tested the 50-EMAs in the 4Hr chart. The spot sustained developing well under its moving averages which kept heading lower in the 4Hr chart. The resistance lies at 1.220 levels, the support finds at 1.210 levels. MACD grew which hints the seller’s spot weakening. RSI stayed within the neutral zone.
Brent strengthened on expectation that OPEC & non-OPEC members will keep to their production cut agreement. Bulls fought back manage & forced the value superior on yesterday. The benchmark bounds to 56.50 before the European session opening. The up movement failed its legs after the level testing.
The value bounced off the 50-EMAs & crossed the 100-EMAs upside in the 4Hr chart. The benchmark remained over its moving averages afterwards. The 50 & the 100-EMAs were horizontal in position whereas the 200-EMAs pointed higher in the same time frame. The resistance exists at 56.50 levels, the support remains at 55.50 levels. MACD indicator was at the neural line. RSI left the neutral zone & drive upwards.
The yellow metal strengthened among risk-off sentiments before Theresa May's speech which was anticipated to be tough. The metal had another positive day on yesterday. The pair moved to a latest weekly high in the Asian session. Buyers jumped the value upwards & crack 1210 levels in the early European hours. Having broken down the level the yellow metal spot extended its growth & approached the 1220 levels the buying force faded.
The price drifted above the moving averages in the 4Hr chart. The 100-EMAs crossed the 200-EMAs upside directions. The 50 & 100-EMAs handled their bullish angle even as the 200-EMA remained flat. The resistance seems in 1220 levels, the support stands in 1210 levels. MACD stayed at the same level which proves the strength of buyers. RSI consolidated within the positive region.