EUR/USD, GBP/USD And XAU/USD TA – March 17
EURUSD intra-day analysis
EUR/USD (1.0767):
EUR/USD advanced yesterday led by encouraging signs from the Dutch elections. The common currency closed at 1.0771 which is a strong resistance level that was firm on two previous occasions. A breakout above 1.0765 – 1.0800 resistance zone will no doubt be bullish for EUR/USD which could extend gains to as much as 1.1100. On the 4-hour chart, there is a small risk of price pullback to 1.0700 on the rising wedge pattern. This could, however, put the bullish bias into question as a break down below 1.0700 could signal near term declines towards 1.0600.
GBP/USD intra-day analysis
GBP/USD (1.2353): GBP/USD posted the second day of strong gains yesterday, but the rally is quite likely to be short lived as price approaches the resistance level of 1.2400 which is pending a retest. The gains in GBP/USD came about on the dissenting vote from the BoE’s monetary policy meeting yesterday. But in the backdrop of Brexit negotiations, it is unlikely for GBP/USD to maintain the gains. Following the break down below 1.2400 which previously acted as support, GBP/USD extended the declines to 1.2109 before posting a reversal. If resistance is established at 1.2400, then we can expect to see further declines coming for GBP/USD to test the support level at 1.2100 more firmly.
XAU/USD intra-day analysis
XAU/USD (113.25): Gold prices continued to rally for the second day after the FOMC meeting. The price touched an eight-day high at 1233.66 yesterday before pulling back lower to close the day at 1226.45. Resistance is seen at 1240 – 1235 level on the daily chart which indicates near term sideways range with support seen at 1200.00. On the 4-hour chart, gold prices could continue rising towards the support/resistance price level of 1237.00 following which we can expect to see a pullback towards 1220.00.
Disclaimer: Foreign exchange (Forex) trading carries a high level of risk and may not be suitable for all investors. The risk grows as the leverage is higher. Investment objectives, ...
more