LeTechs Forex Blog - Daily Technical Analysis 24th MARCH 2016

24 Mar

Daily Technical Analysis 24th MARCH 2016

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EUR/USD - Susceptible however by means of Warning

EUR/USD - sustained to hold its curative tone, instant risk remnants lower. Except be cautious of a shift back superior in the way of its short-term uptrend.

Support lies at the 1.1100 point. Added down, support lies at the 1.1050 point somewhere a contravention will aim at the 1.1000 point.

A break of now will intend at the 1.0950 point. On the other hand, the upside, resistance come in at the level of 1.1250 with a hack from side to side here opening the gate for additional upside towards the 1.1300 point.

Resistance lies at the 1.1350 point somewhere a break will interpretation the 1.1400 point.

It’s on a daily basis RSI is bullish & indicate higher signifying further potency.

Overall, EUR/USD remains prejudiced to the upside on additional strength.

XAUUSD - Gold Stumble to Low on Hawkish Fed Comments

XAUUSD bears frequently look smart waiting they act not. It shifts upper from the last December, when the Federal Reserve resolute to ramble interest rate for the 1st time since 2006, has been magnificent.

XAUUSD has stimulated higher by 23 percent, & an extra 10 to 20 percent rally might happen should the USD fail to pick up & move back higher than the 200/day moving average yet again. The fresh move elevated in XAUUSD preceded further commodity markets like Crude oil &Silver affecting higher.

The value of XAUUSD hit a new low for this month on Wednesday after comparatively, Hawkish Fed Comments from US Federal Reserve’s weighed on the valuable metal & boosted the USD.

As a consequence, XAUUSD curved in below 1225, a key support level.

A technical outlook, the current slides extend gold’s move away from the fresh one-year tall slightly on top of 1280 level resistance with the purpose of reached fewer than 2 weeks ago. This fall has encouraged price to reach down & strike a sudden uptrend support line extend reverse towards the lows of the January in the middle. In adding together, the price has moreover dropped down to shift towards the significant 50-day moving average.

WTI Crude Drops to 40 USD as Oil Stocks bound

Certainly in spite of today’s sells-off price action on together Brent & WTI has been forwarding bullish of belatedly. So, this might be a usual shrink in an upward trending marketplace.

Whereas WTI may be pull gone from the still-declining 200-day moving average which comes in approximately 42.00USD, the 50-day moving average easy & the 21-day exponential moving averages are together pointing higher at present.

In the meantime the weekly chart of Brent shows crude oil has established some resistance at the preceding support level of 42.25USD, which was a provisional down recognized back in last August.

This stage is a key position point for traders & the indecision here should not come as a most important revelation.

Whereas Brent oil holds below 42.25 USD, a probable drop reverse towards old resistance-turned-support at 38.40USD is an opportunity.

The average term trend for Brent would merely turn bearish if while it moves backside under the broken down bearish trend line.

USDCAD Extend bounces back as US Dollar Surge, Oil Retreats

USDCAD piercingly on Wednesday as the USD strengthen & crude oil prices pull back. The greenback established a improve within the last few days since Fed members who have issue comparatively hawkish comments that have a stand in bleak difference to last week's dovish FOMC meeting. Furthermore portion to lift USD/CAD was transformed weakness in the oil-correlated CAD, which has been drag downstairs by a fall in crude oil price.

Opposing to the dovish FOMC meeting last week, somewhere Fed Chair Janet Yellen offered the considerably lower prospect for the pace of US rate hikes this year, Fed officials this week contain considerably an extra optimistic, & hawkish. As a consequence, the greenback has exhausted the 1st semi of this week rebound & rally since the extensive losses suffer past week following the FOMC statement.

This mixture of a strengthen USD & oil-driven weak point in the CAD has lead to the addition of USD/CAD's spring back within the last few days since its fresh 5-months low presently under the 1.3 level psychological support area awake to key resistance around 1.32 level.

In technically, USDCAD has reached a serious point in time, in its recent bounce back. Among any breakout & continued trading on top of the key 1.32 resistance level, the rally might expand towards foremost resistance at 1.34 levels. Several further upsides over 1.34 levels might in the end place the currency pairs on the pathway to carry on its multi-year uptrend.

For the downside, the renowned 1.3 level psychologically remains the key support area to observe. Whichever strong & constant breakdown below 1.3 level be supposed to next target the most important 1.28 support level, followed by a further weakness aim in the region of 1.25 level.

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