Two trades to watch: EUR/USD, oil
Fiona Cincotta February 2, 2021 3:46 PM
EUR/USD looks to GDP data for fresh impetus. WTI breaks above key resistance after a report shows OPEC+ group's adherence to output cuts.
EUR/USD waivers ahead of Q4 GDP data
EUR/USD holds onto gains as just off 2.5 week low reached on Monday as attention turns to Eurozone Q4 preliminary GDP data.
EUR/USD technical analysis
EUR/USD trades below its 50 & 100 sma, the RSI is in bearish territory, the outlook for the pair is bearish on the 4 hour chart. However, a sustained break below strong support at 1.2060/55 is needed to confirm the bearish bias. This could accelerate a decline towards the key psychological level of 1.20 before support at 1.1975 is tested.
WTI breaks above $54 key resistance
Oil prices are on the rise after major producers showed that they were cutting crude output adhering to commitments on restraints.
OPEC members compliance with the agreement supports the market which has been marred by demand concerns amid ongoing covid locks downs.
WTI technical analysis
WTI has been trading range bound since mid-January, capped by 51.75 on the lower band and by 53.90 on the upper band.
Overnight WTI broke above the upper band advancing to an almost yearly high of 54.25 confirming the move above the 50 & 100 sma in the previous session.
Bulls could hold onto control whilst the RSI remains in bullish territory but below overbought conditions. 54.70 the pre-pandemic February peak could offer resistance. A break-through here could bring round number 55.00 into target and 57.50 around the January 2020 low.
On the flip, should resistance turn support at 53.90 break, 52.60 the confluence of the 50& 100 sma could be tested. A break below 51.75 is needed for a potentially deeper selloff to 50.50 and the key psychological level $50.
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
StoneX Financial Pte. Ltd. is not under any obligation to update this report.
Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.