WTI oil reaches to the 72.00 level

WTI oil accelerates its bullish momentum after Donald Trump announced that it will pull out of the nuclear agreement with Iran. During yesterday’s session the price of WTI oil was very volatile, first it dropped to the 67.62 level but then towards the end of the session, the prices go back up and break above the 70.00 level. Today’s rally continues above the 70.00 level and WTI oil may reach the 72.00 level where it may find a resistance. Above the 72.00 level, there are no clear resistances until the 77.13 level where we can find the 200 month EMA. To the downside, below the 70.00 level, its next support could be the 67.62 level, but a better support area could be the 66.00 level where the 55 day EMA is getting close to.

The Euro has been falling for four weeks

On the weekly chart of the EURUSD we can see that the pair has been falling for four consecutive weeks and falls to the 55 week EMA around the 1.1863 level. The pair may try to bounce to the upside from the 55 week EMA, but a better support for the EURUSD may be the 1.1800 level where we can find the 76.4% Fibonacci retracement of the rally from the 1.1550 level to the 1.2550 level. Just below the 1.1800 level we can also find the 200 week EMA, which can contribute to make that zone a very good support. On the other hand, the EURUSD may try to correct to the upside due to the fact that it is clearly over-extended to the downside. The 1.2043 level may act as resistance, but a better resistance could be the 1.2200 level.

False breakout on WTI oil?

WTI oil accelerates its bullish momentum due to the tensions between the United States and Iran, also the drop in crude production by Venezuela has also supported the price of oil. The price of WTI oil breaks above the 70.00 level and continues rallying to the 70.82 level from where it pulls back to the 70.00 zone. The breakout above the 70.00 level has not been confirmed yet, therefore we could see what is known as a false breakout. If the price of WTI oil goes back below the 70.00 level, then it would be entering the congestion area shown on the daily chart, where the price may consolidate with a good support at the 66.00 level. Just below the 66.00 level we can see the 55 day EMA (purple line), which could also contribute to support the price of WTI around that zone. On the other hand, if the price keeps rallying, then its next resistance could be the 72.00 level or any round number level to the 77.13 zone where we can find the 200 month EMA.

Has the EUR/JPY reached a support?

The EUR/JPY accelerates its bearish momentum during today’s session, showing us that the Yen has been beating the Euro, even though it continues losing ground versus the Dollar. On the daily chart of the EUR/JPY we can see that the pair breaks below the 200 day exponential moving average (blue line) at the 131.57 level and drops to the 55 week exponential moving average around the 129.79 zone. The 55 week EMA along with the low at the 128.93 level has been acting as a good support for the EUR/JPY, therefore we could see a bullish bounce from the current levels. To the upside, the same 200 day EMA may act as resistance. On the other hand, the EUR/JPY may continue dropping and below the 128.93 level, its next support area is at the 200 week exponential moving average, around the 127.57 level.

Broadening triangle on the USD/CAD

On the daily chart of the USD/CAD we can see that the price has consolidated and formed what it appears to be a broadening triangle. The formation is just a triangle that keeps widening its range instead of closing it. From the pattern the price may head in any direction, but there is a higher probability of breaking out in the direction of the trend coming into the formation. In this case, the trend is bullish before the pattern formed, therefore it may try to break to the upside. The upper breakout is at the highest high of the formation at the 1.2911 level. To the downside, the confirmation line is at the 1.2801 level. To the upside, the 1.3000 level may act as resistance, followed by the peak at the 1.3123 level. In case of a bearish breakdown, the 200 day EMA (blue line) at the 1.2746 level may act as support. But a breakdown of the 200 day EMA will practically clear the road for the USD/CAD to fall to the low at the 1.2526 level.

Fall continues on the EUR/USD

The Euro versus the Dollar is keeping its bearish momentum and breaks below the 1.2000 level as shown on the daily chart. The pair may try to visit the 1.1900 level or even the 1.18 or 1.17 levels. However, after a strong directional movement, the markets tend to correct amid some profit taking. Therefore, the EUR/USD may try to pull back to the 200 day EMA (blue line) around the 1.2045 level, which could act as resistance. Above the 200 day EMA, its next resistance could be the 1.2153 level, which acted as support in the past. The 55 day EMA (purple line) is now pointing to the downside, indicating a possible trend reversal on the EUR/USD. Attention to a possible breakout-pullback pattern to the 200 day EMA.

Gold next to a support zone

Gold has been beaten lately by the strong rally on the US Dollar, which has reached its highest high for the year. The price of gold drops when the Dollar rallies due to the fact that the precious metal is quoted in Dollars in the international markets and when the greenback rallies the demand for gold outside the US drops. On the daily chart of gold we can see that the price accelerated its bearish momentum below the 1328 level where we can see its 55 day EMA. At the moment, the price of gold has reached its 200 day EMA (blue line), around the 1350 level. The 200 day EMA along with the 1300 level could act as a good support zone for gold, therefore we could see a bullish bounce where the 1328 level could act as resistance. On the other hand, if the price of gold breaks below the 1300 level, it would have the road clear to drop to the 1236 level, but with some pullbacks on the way down.