US crude exports rise

WTI oil continues falling and breaks below the 50.00 level after it was published that the US oil exports have risen to an all-time high of two million barrels per day. The prices of WTI oil has been pressure to the downside due to a rise in US production, while Brent oil that trades in Europe has been supported by the production cuts that OPEC has put in place. That was prompted oil buyers to prefer WTI oil over Brent, because it is cheaper and at the same time, the US oil companies have been exporting more oil to meet the demand. On the daily chart of WTI oil we can see that the price may continue falling to the 49.00 level, where we can also find the 55 day EMA. The 200 day EMA (blue line), may also act as a support. To the upside, the 51.00 level, the 52.00 level, or the 53.00 level may act as resistance.

The bearish trend is still in place on gold

Gold has had a very good bearish trend due to the fact that the risk appetite has risen among investors that are choosing instruments with a higher return. The recent rally on the Dollar has also contributed in the pullback that gold is having due to the negative correlation that exists between the greenback and the precious metal. On the daily chart of gold we can see that the price has come very close to the 200 day EMA and the 200 week EMA around the 1261 level and that zone may act as a support, but on the other hand, the MACD indicator is showing us that the bearish trend is still in place and it is getting stronger according to the bars on the histogram. Therefore, we could also see a breakdown of the 1261 level. If the price of gold breaks below the 1261 level, then it would have the road clear to drop all the way to the 1206 level where it started it latest bullish trend. If gold bounce to the upside from the 1261 zone, then it would have to break above the bearish trendline in order to go back to its bullish trend.

The retracement continues on the GBP/USD

The GBP/USD continues retracing to the downside since it made a high at the 1.3600 level. On the daily chart we can see that when the pair broke below the 1.3500 level, the bearish momentum accelerates to break today below the 1.3300 level. At the moment, the pair is getting close to the 1.3200 zone, which could act as support due to different factors around that zone. The 50% Fibonacci retracement from the latest rally that the GBP/USD made from the 1.2800 zone to the 1.3600 zone could contribute to help stall the retracement at the 1.3200 level. The 55 day EMA (purple line) around the 1.3200 level may also act as a support for the GBP/USD. But besides all the factors around the 1.3200 level, the area with a higher probability to act as a support is the 1.3000 level. At the 1.3000 level we have the 200 day EMA (blue line), which traditionally acts as a better support or resistance zone. At the 1.3000 level we can also see the 76.4% Fibo, which also acts as a better support or resistance zone than the 50% Fibo. And finally the 1.3000 level itself is a round number level with a higher probability of acting as a support or resistance.

The EUR/USD stays around resistance

The 1.1800 level continues acting as a good resistance on the EUR/USD as shown on the daily chart. The pair formed what it appears to be a head and shoulder pattern to break below the 1.1800 level and the 55 day EMA which coincides at the same zone. After the breakdown, the EUR/USD pulls back to the upside and finds resistance at the 1.1800 level. The pair may possibly bounce to the downside from the 1.1800 level, confirming the head and shoulders pattern. To the downside, the 1.1700 level may act as support, but the most relevant support zone is around the 1.1400 level where we can find the 200 day EMA. To the upside, any of the round number levels all the way to the 1.2100 level may act as resistance.

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The EUR/USD breaks above the 1.1800 level

The EUR/USD finally breaks below the 1.1800 level and below the 55 day EMA as it accelerates its bearish trend. On the daily chart we can see that the EUR/USD may continue falling, but the 1.1700 level may act as support. In order for the trend to change to the downside, the EUR/USD must break below the 1.1500 level or below the 200 day EMA at the 1.1400 level. Any of the round number levels to the 1.1400 level may act as support. For now, the 1.1700 level is its most relevant support since it has already acted as support in the recent past. Above the 1.1800 level there is a wide congestion area all the way to the 1.2100 level. The 1.1900, the 1.2000 or the 1.2100 levels could act as resistance. For the EUR/USD to keeps its bullish trend, the price must break above the 1.2100 level.

Will the Dollar reverse its trend?

The Dollar Index continues retracing to the upside and reaches the 55 day EMA at the 93.25 level as shown on the daily chart. The 55 day EMA may possibly act as a resistance and at the moment the bearish trend is still in place. In order for the trend to reverse to the upside, the index should break above the 55 day EMA or even above the 94.00 level. The stochastics indicator on the daily chart are entering the 80% zone, therefore the instrument may be overbought and it may possibly come back down. To the downside, the 91.00 level could act again as a support and in order for the bearish trend to stay in place, the index should break below that level. To the upside, any of the round number levels from the 94.00 to the 96.00 level where we can find the 200 day EMA could act as resistance.