WTI Oil collapsed further during trading on Thursday as the lingering concerns towards the incessant buildup in inventories renewed anxieties over the excessive oversupply of oil in the markets. It seems that the fears over the supply glut may have overshadowed the growing optimism towards the likelihood of a positive meeting in April and this has encouraged bears to attack prices. WTI Oil was overdue for a selloff and a breakdown below $38 may open a path towards $35 in the medium term. From a technical standpoint, prices are still trading above the daily 20 SMA while the MACD firmly points to the upside. A weekly close below $38 may seal the deal for a further drop to $35.
The FTSE100 continues to display signs of exhaustion and has experienced a steep decline as the intensified risk aversion encouraged investors to offload riskier assets for safe-haven investments. Investors must remember that concerns over the health of the global economy still linger on while the decline in oil prices has weighed heavily on the index. With investor risk appetite potentially soured it may only be a matter of time till bearish investors grasp the opportunity to send the FTSE100 lower. From a technical standpoint, a breakdown below 6050 should open a path towards the 6006 support.
This pair is still heavily bearish on the daily timeframe and Yen appreciation from the growing risk aversion should encourage the USDJPY bears to sending prices towards 110.70 and potentially lower. With prices looking immensely bearish, prices may decline further as long as the 114.50 resistance is defended. From a technical standpoint, prices are below the daily 20 SMA while the MACD is also trading lower. Previous support around 112.50 should act as a dynamic resistance for another drop towards 110.00.
This pair is heavily bearish on the daily timeframe and this downside momentum may send price towards 2.8200. Prices are trading below the daily 20 SMA while the MACD has just recently crossed to the downside. The current support at 2.900 has become a dynamic resistance which may invite a further decline towards 2.8200.
The AUDUSD corrected this week with prices crashing back towards the 0.7500 dynamic support. This pair is bullish on the daily timeframe and may be set to incline towards 0.7700 as long as prices can keep above 0.7700. Lagging indicators such as the moving averages and MACD which point to the upside concur with the bullish view on the AUDUSD.
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