EUR/USD trying to find direction before German ZEW data & EZ Q4 GDP. WTI petroleum appears overbought.
EUR/USD is wavering before German ZEW sentiment data & the Eurozone Q4 GDP, the presentation .
Upbeat market mood amid vaccine optimism is keeping the US Dollar struggling
Stimulus deliberations within the US are going to be closely watched with the stimulus plan expected to form further headway.
EUR/USD technical analysis
EUR/USD rebound off resistance at 1.2150 overnight and currently trades 1.2135. The pair has hovered around this level for 4 straight days.
The technical outlook is currently neutral as EUR/USD trades trapped between its 20 & 50 sma on the daily chart, showing a scarcity of directional strength. The RSI is additionally hovering around 50 supporting the neutral bias and therefore the pair awaits fresh direction, potentially from today’s data.
A give way 1.2150 the 50 sma & today’s high, will bring 1.2185 into target (swing high 22nd Jan). A move beyond here could see the bulls gain traction towards 1.23.
Failure to interrupt 1.2150 could see the pair retest 1.2050 before 1.1950 the swing low 5th February.
WTI bulls pause for breath at 13 month high
Weakness within the anti-risk US Dollar additionally to the upbeat outlook for the worldwide economic recovery amid the covid vaccine rollout offers support to grease prices.
Extreme cold conditions in Texas has raised near term supply concerns as power cuts put millions within the dark.
Tensions rise within the Middle East amid an attack of a US base in Northern Iraq.
WTI petroleum technical analysis
WTI eases from yearly high to 60.00
WTI trades above its ascending line dating back to early November. It trades above its ascending 20& 50 sma on the daily chart. Indicating a longtime bullish trend.
According to the RSI the worth has entered overbought territory so some consolidation or maybe a small pullback within the price might be on the cards potentially back towards the line support of $55 whilst still maintaining the bullish bias.
On the upside immediate resistance sits at 60.80 the yearly high. an opportunity above this level opens the door to the September 2019 high high of 63.15 before the 200 high 65.62.
On the flip side, an opportunity below the January 2020 high of 59.30 could see sellers test 55.00 the ascending line and 20 sma. an opportunity lower here could see horizontal resistance turned support at 53.90 inherit play.