WTI Oil tumbled towards $38 during trading on Tuesday as the ongoing concerns over the unrelenting oversupply in the heavily saturated oil markets haunted investor attraction further. This commodity is fundamentally bearish and the fading optimism towards an amicable deal in the April meeting has offered another foundation for bears to pull WTI further away from the $42.40 high. The overextended relief rally may open a path for sellers to attack prices back lower 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 breakdown below $38 should open the floodgates towards $35 and potentially lower.
The FTSE100 experienced a sharp decline during trading on Tuesday following the heavy declines in oil prices which dampened sentiment towards the global economy and soured investor risk appetite. This index continues to be dictated by the erratic movements in oil prices while risk aversion may keep prices capped for an extended period. From a technical standpoint, a breakdown below 6050 could open a path towards 6006 and potentially lower. Technical indicators such as the MACD and moving averages which point to the downside marry this daily bearish view.
This pair is still under pressure on the daily timeframe and Yen appreciation from the renewed risk aversion should encourage the USDJPY bears to sending the USDJPY back down towards 112.00. With prices currently engaged in a relief rally, the resistance just below 114.00 may provide a foundation for prices to decline back down towards 112.00. From a technical standpoint, prices are below the daily 50 SMA while the MACD is also trading lower. Previous resistance around 114.00 should act as a platform for another drop towards 112.00.
This pair is heavily bearish on the daily timeframe and this downside momentum may send prices towards 17.20. Prices are trading below the daily 20 SMA while the MACD has just recently crossed to the downside. The current support at 17.40 has become a dynamic resistance which may invite a further decline towards 17.20
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 0.7400. 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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