WTI Oil descended to fresh daily lows at $30.85 during trading on Monday as ongoing oversupply woes and heavy profit taking erased most of the extreme gains accumulated last week. Investor attraction towards oil diminished further as Iraq announced record high oil production, pumping more supply into the already heavily saturated international oil markets in December. WTI remains fundamentally bearish and the dangerous combination of an excessive oversupply mixed with sluggish demand should offer an opportunity for bearish investors to send prices much lower. From a technical standpoint, the candlesticks currently respect the bearish daily channel while the MACD still trades to the downside. A breakdown back below $30 should encourage a selloff towards the next relevant support at $28.
The USDCHF is technically bullish on the daily timeframe as there have been consistently higher highs and higher lows. Price is trading above the daily 20 SMA while the MACD has also crossed to the upside. Parity at 1.000 has acted as a tough support and a breakout above 1.0150 should encourage a further incline towards 1.0300.
The EURAUD is currently engaged in a tug of war as both the EUR and AUD are in a weak condition. Growing expectations that the ECB may unleash further stimulus measures in March has left the EUR vulnerable while declining commodity prices and China woes keep the AUD depressed. From a technical standpoint, the EURAUD remains bullish on the daily timeframe as long as prices can keep above the 1.5400 support. The technical such as the MACD and simple moving averages still suggest that bulls can take control once a solid breakout above 1.5700 is achieved.
The risk-averse trading environment continues to boost appetite for safe haven instruments such as the JJPY and this has consequently sent the NZDJPY trading lower. From a technical standpoint, this pair is bearish but currently resides in a wide range with support at 74.00 and resistance at 77.50. Prices are trading below the daily 20 SMA while the MACD is deep into the downside. If the potential new lower high at 77.50 defends, then there may be a further decline towards 74.50.
This index is technically bullish on the daily timeframe and currently trades in a bullish daily triangle formation. Prices are above both the daily 20 and 50 SMA while the MACD also trades to the upside. A breakout above 99.50 should encourage a further decline to the next relevant resistance based at 100.50.
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