Daily Technical Analysis on 20th January 2017
Today’s Technical Pairs: EURUSD, GBPUSD, USDJPY, & XAUUSD.
The ECB left its rates untouched. The deposit rate remained at -0.4 percent & the interest one at 0.0 percent. Besides, the US dollar strengthened among positive data. The Initial Jobless Claims came in green. Housing Starts showed solid numbers as well. Investors’ concentration currently turns to Trump's inauguration which will take place on later the day. The downward trajectory lost its floor just under the 1.065 levels when sellers met a hard barrier which discarded the pair upwards. The euro upturned majority of its losses on yesterday. The spot ruined 1.065 levels before the European session opening & moved towards 1.070 levels. The pair offered a neutral-to-bullish carriage during the European session.
In the 4Hr chart showed that the value remained over the moving averages. The 100-EMA crossed the 200-EMA upside. The 50 & 100-EMAs pointed superior whereas the 200-EMA remains flat in the same time frame. The resistance is at 1.070 levels, the support comes in at 1.065 levels. MACD reduced which signs the buyer’s spot weakening. RSI oscillator was within the neutral zone.
Housing Price Balance foe December came in negative slowing down the pound upturn on yesterday. The pound weakened additional against the US dollar after the positive US data. We anticipate a figure of UK's Retail Sales releases today which are predictable with positive numbers. The pound strengthened additional on last day, sending the pair to its latest highs at 1.240 levels. The cable was adept to reverse its few losses among broad dollar's weakness. Having found a limited bottom at 1.225 levels the spot overturned its direction & rallied upside breaking 1.230 levels in the European hours. After passing the level the pair sustained moving north targeting levels at 1.240.
The price sustained developing well between the 200 & 100-EMAs in the 4Hr chart. The 50 & 100-EMA remains neutral whereas the 200-EMA kept heading lower in the same time frame. The resistance lies in 1.240 levels, the support comes in 1.230 levels. MACD grew which signs a buy signal. RSI left the neutral zone & moves into the overvalued region.
J. Yellen’s remarks coupled with solid data boosted the US dollar demand. The solid labor market data & Housing Starts publish supported the greenback. All eyes are on Trump's inaugural ceremony. The pair stayed in a near-term downward channel keeps on around its upper limit on last day. Buyers lost their momentum after reaching 115 levels. The US dollar was in a consolidation phase throughout the Asian & European hours. Traders fights back with the hurdle to restart their advance. The level, yet, turned out to be a hard obstacle to crack. The US dollar got below selling pressure on some up-move towards the level. A latest bout of buying interest bears the US dollar.
The value tested the 50-EMAs in the 4Hr chart. The 100-EMA crossed the 200-EMA downside directions. The 50 & 100-EMAs handled their bearish slope even as the 200-EMA remained neutral in the same chart. The resistance seems at 115 levels, the support appears at 114 levels. MACD grew which hints the sellers’ positions weakening. Indicator RSI was within the overvalued regions nearly to the neutral areas.
The wide US dollar strengthening reflects on the yellow metal. Moreover strong dollar gold prices softened among the positive US data & the ECB decision to keep its rates untouched. The metal prices remained below pressure on last day among a solid dollar. The pair bounced off the 1200 psychological levels & stayed around maintaining during the day. The yellow metal continued developing well over its moving averages in the 4Hr chart. The 50 & 100-EMAs kept moving superior whereas the 200-EMA remains flat in the same timeframe. The resistance exists at 1210 levels, the support stands at 120 levels. Indicator MACD declined which signs the buyer’s spot weakening. RSI oscillator stayed within the neutral region.