Two trades to watch: EUR/USD, WTI oil

EUR/USD looking for direction ahead of German ZEW data & EZ Q4 GDP. WTI crude oil appears overbought.

Charts (4)

EUR/USD looking for direction ahead of German ZEW data & EZ Q4 GDP

EUR/USD is wavering ahead of German ZEW sentiment data & the Eurozone Q4 GDP, the second reading.

Upbeat market mood amid vaccine optimism is keeping the US Dollar under pressure

Stimulus deliberations in the US will be closely watched with the stimulus plan expected to make 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 lack of directional strength. The RSI is also hovering around 50 supporting the neutral bias and the pair awaits fresh direction, potentially from today’s data.

A move over 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 break 1.2150 could see the pair retest 1.2050 prior to 1.1950 the swing low 5th February.

Learn more about trading forex

Oil struggling to hold $60.00

WTI bulls pause for breath at 13 month high

Weakness in the anti-risk US Dollar in addition to the upbeat outlook for the global economic recovery amid the covid vaccine rollout offers support to oil prices.

Extreme cold conditions in Texas has raised near term supply concerns as power cuts put millions in the dark.

Tensions rise in the Middle East amid an attack of a US base in Northern Iraq.

WTI crude oil technical analysis

WTI eases from yearly high to 60.00

WTI trades above its ascending trend line dating back to early November. It trades above its ascending 20& 50 sma on the daily chart. Indicating an established bullish trend.

According to the RSI the price has entered overbought territory so some consolidation or even a slight pullback in the price could be on the cards potentially back towards the trend line support of $55 whilst still maintaining the bullish bias.

On the upside immediate resistance sits at 60.80 the yearly high. A break above this level opens the door to the September 2019 high high of 63.15 ahead of the 200 high 65.62. 

On the flip side, a break below the January 2020 high of 59.30 could see sellers test 55.00 the ascending trend line and 20 sma. A break lower here could see horizontal resistance turned support at 53.90 come into play. 

Learn more about trading oil.

The complete guide to trading oil markets.

More from EUR


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.

GAIN Capital Singapore Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the GAIN Capital 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), GAIN Capital Singapore 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 GAIN Capital Singapore 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 GAIN Capital Singapore 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.

GAIN Capital Singapore 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 for the complete Risk Disclosure Statement.