There have been some important price movements in several markets. Today we would like to present the most interesting charts from a technical viewpoint which could draw more attention before long.
- AUDUSD tries to stay above its crucial support
- GBPUSD keeps falling despite the solid labour market data
- Oil prices (OIL.WTI) rebounds on the back tensions in the Strait of Hormuz
Let’s begin with GBPUSD as the pair is experiencing notable declines during Tuesday’s trading despite decent labour market data. The pair is trading 0.7% down at the time of writing this analysis and from a technical standpoint there are no too many reasons to cheer for bulls. Note that the last week’s candlestick has been already covered by the new candle which does not bode well for buyers. Moreover, the underlying trend here is bearish, hence any tactic trying to benefit from price rebounds could be risky. Once the price does not see a more significant rebound by the end of the day, the ongoing pullback could continue. Looking forward, the next support could be found nearby 1.2150 while the crucial resistance is placed at 1.27. Until the pair trades below this resistance, bulls could struggle to see larger price rises.
GBPUSD keeps falling at the beginning of this week. Source: xStation5
When we look at the weekly time frame we may notice that the pair has managed to stay above its pivotal support zone. Although we cannot say that the Aussie is already out of the woods, but it is clear that the pace of decline has slowed down so far this year. Thus, a possible corrective pullback to the upside could be on the cards. However, to do so bulls need to break above the SMA40 constituting the strong resistance for them. On top of that, do note that the SMA40 is currently moving close to the 23.6% retracement of the latest leg lower which could even strengthen its significance. Fundamentally, the Aussie could benefit from de-escalation of the US-Sino trade dispute.
AUDUSD defends the key support. Source: xStation5
Last but not least, oil prices saw noticeable rises in the past week. The previous weekly candlestick was already covered, suggesting that bulls took control. It is worth noting that tensions in the Strait of Hormuz have been among the key reasons behind the rally. Currently, the price is moving around the 61.8% retracement of the latest downward wave. Nevertheless, the underlying trend seems to be more supportive of bulls, hence they could try to push higher. Should the above-mentioned retracement be broken, room for further price rises could be opened. Looking ahead, the strong resistance could be found nearby $64.7.
Oil prices (OIL.WTI) are approaching the 61.8% retracement. Source: xStation5