Technical Outlook

Bears are pausing above $20 level before final break lower

WTI OIL WTI future contract is consolidating above cracked $20 level after hitting new 18-year low on Monday. Larger bears are pausing ahead of strong psychological support with limited recovery being so far capped by falling 5DMA ($22.10) which guards more significant resistance provided by descending 10DMA ($23.07). Overall picture remains…
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Near-term action is in red but so far with limited weakness

GBPUSD Cable extended pullback on Tuesday after last week’s strong rally repeatedly capped by weekly cloud base, but weakness was tempered by better than expected data. UK Q4 current account deficit narrowed from the previous three-month period and also came below forecasts, reducing pressure on pound from month / Q1 end strong dollar demand.…
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Close below key 1.0891 support would signal reversal

The Euro fell on Tuesday, extending the weakness of the previous day, pressured by increased demand for the US dollar at the end of month / quarter. Monday’s bearish inside day was initial negative signal which materialized on today’s bearish acceleration through strong supports at 1.1008/00 (daily cloud top / psychological) and other pivot at…
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Bears are pausing ahead of key supports

The dollar index edged higher on Monday as bears pause after nearly 5% fall last week (the biggest weekly loss since 2009) on rising uncertainty over prolonged global lockdown on coronavirus pandemic. Fresh upside action could be seen as positioning for further weakness as last Friday’s trading penetrated daily cloud and closed within the cloud,…
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Bulls are taking a breather after massive gains last week

Cable edges lower on Monday following last week’s massive rally (6.6%) as bulls face headwinds from weekly cloud despite penetration and weekly close within the cloud. Overbought stochastic adds to consolidation signals but the action remains underpinned by massive weekly bullish candle and so far holding above solid support at 1.2304 (daily…
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