Two trades to watch EURUSD WTI
EUR/USD picks up as US yields ease, but still looks vulnerable. WTI bounces off 50 sma, uptrend in tact for now.
Share this:
EUR/USD picks up as US yields ease, but still looks vulnerable
US 10 year yields rose to 13 month high of 1.75% yesterday. However, they have eased today to around 1.70%. The US Dollar is also giving back some of Thursday’s gains.
Some European countries plan to resume using the AstraZeneca covid vaccine which is underpinning the common currency. Although France tightening lockdown restrictions adds weight to the Euro
Where next for EUR/USD?EUR/USD slid back from its overnight high of near 1.20 to 1.1900. The pair attempted to form a double top pattern which began earlier in the week. However, a break below 1.19 needed for this bearish pattern to be confirmed.
The pair has picked up slightly and trades at 1.1926 currently -it is testing its 20 & 50 sma on the four hour chart. Failure to break above this resistance could see the pair look to test 1.19 again and move towards 1.1840 low March 8.
Should the recovery manage a break above the 20 & 50 sma then resistance at 1.1990 could be tested for a third time this week. A break out above this level at 1.1990 could see the EUR/USD breakout towards 1.2050.
Learn more about trading forex
WTI bounces of 50 sma, uptrend still intact for now
WTI dropped by 7.6% yesterday in its worst day since the wild swings back in April. Across the week WTI is looking to shed some 8%
Energy prices faltered this week amid concerns regarding the vaccine rollout in Europe & tighter lockdown restrictions impacting the demand outlook. The stronger US Dollar added pressure to oil.
Today, the US Dollar is easing, tracing yields lower and some European countries have said they will resume the AsatraZeneca vaccine providing a touch of optimism.
The economic calendar is relatively quiet with just the Baker Hughes rig count in focus later today.
Where next for WTI?
Whilst WTI dropped sharply through its ascending trend line dating back to early November. The 50 sma on the daily chart offered support, halting the sell off. Breaking through these two supports could lead to a deeper selloff bringing 57.00 support into focus.
However, the price has pushed higher from the 50 sma and has retaken the key $60.00 sma. To look convinsing the recovery would need to push beyond 62.80 back over the ascending trend line. Beyond here buyers could re-aim for the yearly high of 67.80
EUR/USD picks up as US yields ease, but still looks vulnerable
US 10 year yields rose to 13 month high of 1.75% yesterday. However, they have eased today to around 1.70%. The US Dollar is also giving back some of Thursday’s gains.
Some European countries plan to resume using the AstraZeneca covid vaccine which is underpinning the common currency. Although France tightening lockdown restrictions adds weight to the Euro
Where next for EUR/USD?EUR/USD slid back from its overnight high of near 1.20 to 1.1900. The pair attempted to form a double top pattern which began earlier in the week. However, a break below 1.19 needed for this bearish pattern to be confirmed.
The pair has picked up slightly and trades at 1.1926 currently -it is testing its 20 & 50 sma on the four hour chart. Failure to break above this resistance could see the pair look to test 1.19 again and move towards 1.1840 low March 8.
Should the recovery manage a break above the 20 & 50 sma then resistance at 1.1990 could be tested for a third time this week. A break out above this level at 1.1990 could see the EUR/USD breakout towards 1.2050.
Learn more about trading forex
WTI bounces of 50 sma, uptrend still intact for now
WTI dropped by 7.6% yesterday in its worst day since the wild swings back in April. Across the week WTI is looking to shed some 8%
Energy prices faltered this week amid concerns regarding the vaccine rollout in Europe & tighter lockdown restrictions impacting the demand outlook. The stronger US Dollar added pressure to oil.
Today, the US Dollar is easing, tracing yields lower and some European countries have said they will resume the AsatraZeneca vaccine providing a touch of optimism.
The economic calendar is relatively quiet with just the Baker Hughes rig count in focus later today.
Where next for WTI?
Whilst WTI dropped sharply through its ascending trend line dating back to early November. The 50 sma on the daily chart offered support, halting the sell off. Breaking through these two supports could lead to a deeper selloff bringing 57.00 support into focus.
However, the price has pushed higher from the 50 sma and has retaken the key $60.00 sma. To look convinsing the recovery would need to push beyond 62.80 back over the ascending trend line. Beyond here buyers could re-aim for the yearly high of 67.80
Latest market news
The complete CFD trading experience
Award-winning platforms, competitive spreads, low commissions and dedicated support.
We live and breathe the markets and are dedicated to helping traders realise their ambitions as we continue to set the industry bar.
Economic calendar
Web Trader platform
Our sophisticated web-based platform is packed with features.
Related articles
EUR/USD Update: Will Fed Expectations Keep Pressure on the Euro?
The week continues to present challenges for the euro's short-term strength. This is reflected in the recent performance of EUR/USD, which has declined by nearly 0.6% over the last three trading sessions
EUR/USD Forecast: Euro Extends Losses Ahead of Fed Rate Decision
The euro has started to face a more challenging period in the short term. The EUR/USD pair has already declined by nearly 0.81% over the last four trading sessions, a move that has begun to reinforce a meaningful bearish bias in favor of the U.S. dollar.
EUR/USD Analysis: Euro Attempts to Recover Following the ECB Decision
Today's session has been particularly relevant for the euro's performance in the short term. After the EUR/USD registered a decline of nearly 0.3% during the session, the European currency has managed to recover a large part of its losses.
StoneX Europe Ltd may make third party material available on this website which may contain information included but not limited to the conditions of financial markets. The material is for information purposes only and does not contain, and should not be construed as containing, investment advice and/or investment recommendation and/or an investment research and/or an offer of or solicitation for any transactions in financial instruments; any decision to enter into a specific transaction shall be made by the client following an assessment by him/her of their situation.
StoneX Europe Ltd makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. We are not under any obligation to update any such material. Any opinion made may be personal to the author and may not reflect the opinion of StoneX Europe Ltd.