Daily Technical Analysis on 9th February 2017
Today’s Technical Pairs: EURUSD, GBPUSD, USDJPY, & XAUUSD.
The euro handled its weakness following Draghi’s accentuated the regulator's willingness to raise the current asset purchase program in volume or duration. The glow calendar & USD dynamics will stay the key drivers in the markets in the short term. The selling pressure in the region of the European currency remained unmovable on yesterday. The Asian recovery stalled subsequent to reaching 1.070 levels. The value found new offers about the hurdle & softened a bit in the late Asian trades. The solitary European currency accelerated its turn down in the European morning session & tested 1.065 levels.
The level restricted sellers’ move ahead for a while. The values bounced off the 100-EMAs downside in the 4Hr chart. The 100 & 200-EMAs were bullish, whereas the 50-EMA remains neutral in the same timeframe. The resistance finds at 1.070 levels, the support comes at 1.065 levels. Indicator RSI was within the oversold regions & moved south side direction.
The pound flies to new weekly highs after BoE’s External MPC Member Forbe's hawkish comments who implicit that the regulator might raise rates in response to the weaker pound. The pound bullish point faded & the value goes down back to 1.250 levels in the night hours. Traders remained evenly divided between bulls & bears throughout the morning session. The Cable stayed in a stiff range around the points out handle waiting for unmarked impetus to smack higher from the constant bullish consolidative stage.
The value bounced off the 200-EMAs & smashed the 100-EMAs & tested the 50-EMAs in the 4Hr chart. The mark level lost to retake the 50-EMAs & rolled back towards the 100-EMA. The 100-EMA sharps superior, the 50-EMAs handled its bearish angle whereas the 200-EMA was neutral in the same timeframe. The resistance lies in 1.250 levels, the support exists in at 1.240 levels. RSI oscillator left the oversold area & moves into the neutral zone.
A risk-on sentiment & a latest demand for the US Treasury bond yields helped the US dollar floating over recent lows. Further, traders favored to stay neutral before this week's meeting between Japanese PM Shinzo Abe & the US president Trump. The downward configuration remained intact on yesterday. Following the current drop the US dollar handled to recover a little floor but unsuccessful to move ahead far away from the levels of 112 support areas. New bids emerged in an Asian trades, prompting a minor-recovery towards 112.5 levels. After touching the 112.5 mark levels the upturns stalled, the spot stayed over the level waiting for brand new drivers.
According to the 1Hr chart the value bounced off the 100-EMAs & cracks the 50-EMAs downside pressure. All the moving averages set aside positioning lower in the mentioned chart. The resistance seems at 113 levels, the support appears at 112 levels. Indicator MACD grew which signs the seller’s spot weakening. RSI was within the oversold region nearly the neutral zone.
Political volatility in the EU ahead of the French elections, & insecurity over the US President political proceedings boosted the demand for the precious metal. Besides, fading prospect of Fed rate-hike action in the short-term weighed on US Treasury bond yields supporting the yellow metal. Bulls handled control over the market on last day. The yellow metal spot found new bids around 1230 levels & managed to remove all Tuesday's losses in the European hours. The yellow metal grew & re-energized 3 months high at 1240 levels.
The metal values bounced from the 50-EMAs in the 1Hr chart. The spot sustained developing well over its moving averages throughout the day. All moving averages were bullish in the 1Hr timeframe. The resistance remains in 1240 levels, the support stands in 1230 levels. MACD histogram grew which hints buyer’s supporting strength. Oscillator RSI consolidated within the overvalued region.