Two trades to watch EURUSD WTI oil

EUR/USD looking for direction ahead of German ZEW data & EZ Q4 GDP

EUR/USD is wavering ahead of German ZEW sentiment data & the Eurozone Q4 GDP, the second reading.

Upbeat market mood amid vaccine optimism is keeping the US Dollar under pressure

Stimulus deliberations in the US will be closely watched with the stimulus plan expected to make further headway.

EUR/USD technical analysis

EUR/USD rebound off resistance at 1.2150 overnight and currently trades 1.2135. The pair has hovered around this level for 4 straight days.

The technical outlook is currently neutral as EUR/USD trades trapped between its 20 & 50 sma on the daily chart, showing a lack of directional strength. The RSI is also hovering around 50 supporting the neutral bias and the pair awaits fresh direction, potentially from today’s data.

A move over 1.2150 the 50 sma & today’s high, will bring 1.2185 into target (swing high 22nd Jan). A move beyond here could see the bulls gain traction towards 1.23.

Failure to break 1.2150 could see the pair retest 1.2050 prior to 1.1950 the swing low 5th February.

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Oil struggling to hold $60.00

WTI bulls pause for breath at 13 month high

Weakness in the anti-risk US Dollar in addition to the upbeat outlook for the global economic recovery amid the covid vaccine rollout offers support to oil prices.

Extreme cold conditions in Texas has raised near term supply concerns as power cuts put millions in the dark.

Tensions rise in the Middle East amid an attack of a US base in Northern Iraq.

WTI crude oil technical analysis

WTI eases from yearly high to 60.00

WTI trades above its ascending trend line dating back to early November. It trades above its ascending 20& 50 sma on the daily chart. Indicating an established bullish trend.

According to the RSI the price has entered overbought territory so some consolidation or even a slight pullback in the price could be on the cards potentially back towards the trend line support of $55 whilst still maintaining the bullish bias.

On the upside immediate resistance sits at 60.80 the yearly high. A break above this level opens the door to the September 2019 high high of 63.15 ahead of the 200 high 65.62.

On the flip side, a break below the January 2020 high of 59.30 could see sellers test 55.00 the ascending trend line and 20 sma. A break lower here could see horizontal resistance turned support at 53.90 come into play.

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