CURRENCIES TECHNICAL ANALYSIS June.22

22 Jun, 2018 17:19

GBP/USD

Buyers failed to extend their gains. The pound found a decent resistance at 1.3300 where the EMA50 and EMA100 limited its advance. The subdued buyers’ activity is seen around the sterling right now. The major is about to abandon the area of its recent tops and is planning to reverse its course. The pair bounced off the level and headed towards 1.3250. However, the EMA50 is on the buyers’ side so far and is giving support the British currency. The technical indicators are giving mixed signals. The moving averages are still going down while short-term indicators like MACD and RSI are pointing to the upside. The resistance resides at 1.3300, the support comes in at 1.3200.

Buyers need to overcome 1.3300 to continue moving higher. A cut through here will open the doors towards 1.3400. Alternatively, we would consider and a sell scenario when sellers regain control and send the market towards 1.3100.

Gold

Gold continued its downward trajectory today. Sellers regained 1270 on Thursday and pushed the spot towards 1260. They never reached this level as they were stopped at 1261 where the yellow metal ran through fresh offers and jumped back to 1270. The moving averages kept heading downwards. MACD is growing in the negative territory. RSI left the oversold area and is neutral now. The resistance resides at 1270, the support comes in at 1260.

We assume that a buying momentum around the US dollar will push the XAU/USD pair to 1250 in the coming days. However, sellers need to regain the 1260 level first and only then they will have an opportunity to reach the targeted level.

Brent

Brent continued staying in a downward structure. The benchmark fell to the lower limit of the channel yesterday. Sellers probed the level 72.50 where they faced buying rejection and had to retreat. Buyers used this chance to reverse some losses. Brent spiked to 73.50 first and the extended its buying bias towards 74.50. The price is testing the upper end of the downward channel right now, barely touching the EMA50 which is located in this area. The technical indicators are moving downwards. MACD is in the negative area. RSI bounced off the oversold area and is neutral now. The moving averages are still moving south. The resistance stands at 74.50, the support is at 73.50.

We believe that sellers will stop buyers in the short-term and will return Brent below 73.50.

AUD/USD

Sellers advanced to 0.7350 this week, but lost strength over there. Sellers did not give up at once and tried to reclaim this barrier one more time. A second failed test of the level caused a pull back and a move to the 0.7400 area first. The spot accelerated its rally afterwards and spiked towards 0.7450, however, slowed down in the 0.7425 area. The moving averages continued moving downwards in the 4 hours chart. MACD is growing in the negative area. RSI is heading towards the overbought zone. The resistance stands at 0.7450, the support is at 0.7400.

The AUD is approaching the EMA50 which might not only slow it down, but also reject the spot downwards. If so, the AUD/USD pair may revisit the 0.7400 area in the coming days.

S&P500

Sellers continued pushing S&P500 downwards facing buyers’ resistance at every level they test. Thus, bears regained control and pushed the price towards 2730 yesterday. The sell-off did not last long and soon buyers regained control and reversed the benchmark’s course. They lifted the price to 2760 first and then extended rally targeting at 2770 where the EMA50 lies. The moving averages are heading north. MACD is growing in a negative area. RSI bounced off the oversold zone and is neutral now. The resistance stands at 2790, the support is at 2760.

If buyers stay above 2760 and overcome the EMA50, they might to move the S&P500 index towards 2780, en route to 2790.

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