Daily Technical Analysis on 19th January 2017
Today’s Technical Pairs: EURUSD, GBPUSD, USDJPY, & XAUUSD.
The dollar wiped out its few losses against the euro before J.Yellen’s speech on yesterday. Furthermore the greenback got holds up from US consumer price index which matches with investor’s expectations. The ECB will declare its interest rate decision later the day. The bullish market formation remained in place on last day. The euro finished an upside impulse & retreated from the weekly high at 1.0716 levels. The present rebound should be measured corrective among profit-taking after the fresh rally. The pair goes back under the 1.070 levels in the early trades on previous day & remained around the level throughout the European trades.
The value sustained developing well above the moving averages in the 4Hr chart. The 50 & 100-EMAs preserved their bullish slope whereas the 200-EMAs remained neutral in the same time frame. The resistance is at 1.070 levels, the support comes at 1.065 levels. MACD reduced which signs the buyer’s spot weakening. RSI oscillator stayed within the overvalued region.
A concern about hard Brexit keeps weighing on the cable. Even with the positive labor market data of Unemployment Rate stays unchanged; Claimant Count Change on the divergent increased the pound weakened on yesterday. The pound opened red in opposition to the dollar on last day. The cable bounced off the edge of the overbought region & moved lower in the Asian hours. Sellers smashed the 1.240 levels in the early trades & tested 1.230 levels in the European session. On the other hand, the 1.230 levels handle stopped seller's move forwards. After reaching the level the value rolled back & hovered over the level before the US session opening.
The spot bounced off the 200-EMAs in the 4Hr chart. All moving averages kept heading inferior in the same timeframe. The resistance lies in 1.240 levels, the support finds in 1.230 levels. MACD declined which supports the strength of sellers. RSI stayed within the overbought zone.
The US dollar took a breath touching the 7-week lows whereas investors focused on J.Yellen’s speech. The pair remained within a downtrend control on yesterday. The pair found a hard support at 112.5 levels. The mark levels rejected the spot upside giving the US dollar a possibility to reverse a slight portion of its losses. After breaking 113 levels in the Asian hours the recovery stalled over the level during the European session.
The 4Hr chart shows that the value sustained developing well under the moving averages. The 100 EMAs intersect the 200-EMAs downside. The 50 & 100-EMAs kept heading lower even as the 200-EMA stands flat in positions. The resistance exists at 113 levels; the support seems at 112 levels. MACD deals to the downwards. The RSI left the oversold areas.
The yellow metal slowed down its rally after touching 8-week highs among the US dollar recovery & risk-on sentiment. All investor’s focal points were on inflation data & Yellen's speech on last day. The metal prices remained in an ascending channel. After touching the 4-weeks peaks on day before yesterday the metal somewhat retreated & move towards the lower limit of its upward structure on last day. The metal pair slightly turns down in the Asian hours & found some support at 1210 levels. Sellers struggled tough to cracks under the level throughout the European session.
According to the 1Hr chart the value tested the bullish 50-EMAs. The value stayed over its moving averages which handled their bullish slant in the 1Hr chart. The resistance appears in 1220 levels, the support stands in 1210 levels. Indicator MACD stayed at the same level which signs the strength of buyers. RSI consolidated within the overvalued region.