Daily Technical Analysis on 2nd March 2017
Today’s Technical Pairs: EURUSD, GBPUSD, USDJPY, & XAUUSD.
Trump dissatisfied investors with his speech to Congress when he lost to give extra particulars on his plans to boost infrastructure & his tax reform plans. Still, Fed speakers saved the US dollar from a sell-off refreshing hopes for Fed rate-hike action on March. The fresh recovery stalled at 1.0627 levels on last day. The value distorted its direction & began a new slide downside. Traders bust the 1.060 levels in the early Asian hours & sustained pushing the ordinary European currency lower on yesterday. The US dollar bulls seized more power with the European stocks opening.
The pair cracks the 50-EMAs downside in the 4Hr chart. The 50 & 100 EMAs kept heading lower whereas the 200-EMA remains flat. The price was under the moving averages in the same chart. The resistance finds at 1.055 levels, the support comes at 1.050 levels. MACD indicator was at the centerline in position. RSI was close to the undervalued region, supports a fresh move lower.
The pound damaged on the rear of bearish Manufacturing PMI for February. Markets at present eagerly wait for Construction PMI which is predictable to stay unchanged. Following weeks of variation between 1.2500 - 1.2400 levels the pound lastly moved inferior the range. Sellers smashed the 1.2400 levels switch in the later on the day & sustained forcing the pound lower in the night trades. Though, the downward momentum had lost its floor by the morning session. Sellers were capable to touch 1.2344 levels where the pair establishes some new bids which temporally rescued buyers from additional losses.
In the 4Hr chart shows that the key bounced off the 200-EMAs downside & sustained developing well under the moving averages afterwards. The 50-EMAs intersect the 200-EMA downwards. The 50 & 100 EMAs pointed lower whereas 200-EMA maintains its gentle bullish slope in the same timeframe. The resistance lies in 1.240 levels, the support exists in 1.230 levels. The MACD histogram declined which hints the sellers’ potency. The RSI indicator stayed close to the oversold areas.
The Fed's speakers invigorated trusts that the US controller will raise its rate on March conference. The tough Chinese manufacturing PMI further increased investors' risk appetite, which weighed on the yen as a safe-haven currency. The US dollar starts a strong support around 112 levels. The spot forced away from the grip & rallied right after reaching the level. Bulls ruined 113 levels in the early Asian session & sustained moving superior afterwards. The currency pair had touched 113.61 levels by the European opening session. European traders lost to expand a buying bias. Buyers had move towards 114 levels by the US session opening.
The value broke all the moving averaged upside in the 4Hr chart. The 50 & 100 EMAs pointed superior whereas the 200-EMA kept bearing lower in the mentioned chart. The resistance seems at 114 levels, the support appears at 113 levels. MACD indicator was at the neutral line. If the histogram moves into the positive zone, that will sign buyers’ growing strength. If MACD comes back into the negative zone the sellers will take the market. RSI stirred north which proves the current uphill momentum.
The yellow metal destabilized following Fed officials’ hawkish remarks which increased traders’ expectations for Fed rate hike this month. Bulls gave up power on yesterday. Bears took the charge & forced the yellow metal lower. The pair smashed 1250 levels during the early session on last day. The value sustained moving downside afterwards & had touched 1240 levels by the morning trades. The level clogged sellers who remained around the grip trying hard to expand their growth.
According to 4Hr chart the value tested the 50-EMAs downside direction. The moving averages kept heading superior. The resistance remains in 1250 levels, the support stands in 1240 levels. MACD reduced which hints the buyers’ spot weakening. RSI stayed within the neutral zone.