Two trades to watch: EUR/USD, oil
Fiona Cincotta February 2, 2021 7:46 AM
EUR/USD looks to GDP data for fresh impetus. WTI breaks above key resistance after a report shows OPEC+ group's adherence to output cuts.
EUR/USD waivers ahead of Q4 GDP data
EUR/USD holds onto gains as just off 2.5 week low reached on Monday as attention turns to Eurozone Q4 preliminary GDP data.
EUR/USD technical analysis
EUR/USD trades below its 50 & 100 sma, the RSI is in bearish territory, the outlook for the pair is bearish on the 4 hour chart. However, a sustained break below strong support at 1.2060/55 is needed to confirm the bearish bias. This could accelerate a decline towards the key psychological level of 1.20 before support at 1.1975 is tested.
WTI breaks above $54 key resistance
Oil prices are on the rise after major producers showed that they were cutting crude output adhering to commitments on restraints.
OPEC members compliance with the agreement supports the market which has been marred by demand concerns amid ongoing covid locks downs.
WTI technical analysis
WTI has been trading range bound since mid-January, capped by 51.75 on the lower band and by 53.90 on the upper band.
Overnight WTI broke above the upper band advancing to an almost yearly high of 54.25 confirming the move above the 50 & 100 sma in the previous session.
Bulls could hold onto control whilst the RSI remains in bullish territory but below overbought conditions. 54.70 the pre-pandemic February peak could offer resistance. A break-through here could bring round number 55.00 into target and 57.50 around the January 2020 low.
On the flip, should resistance turn support at 53.90 break, 52.60 the confluence of the 50& 100 sma could be tested. A break below 51.75 is needed for a potentially deeper selloff to 50.50 and the key psychological level $50.
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.