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Sterling in Downtrend. WTI at Key Fib Resistance.


Welcome to this week’s Market Blast Technicals where we will look at GBPJPY, GBPCHF, GBPUSD, EURUSD, WTI (US Oil), and USDMXN


Yesterday we looked at USDMXN from the fundamental standpoint with an Interest Rate decision due this week but watch this consolidation pattern in this pennant.Screenshot 2020-06-23 at 09.38.58

We had already seen the pair break this descending triangle back in May.Screenshot 2020-06-23 at 09.39.15

We have been watching the gap from early March on WTI and we note that the level of $41.50 per barrel is also a key 50% Fibonacci resistance level which was support near the end of 2018.

Price is very close to filling the gap and, if we break resistance with a bit of better news on Crude demand, the next level above is the 61.8% level at $50 per barrel.

This month we note a downtrend on EURUSD with price at the upper trend line and, if we bounce to the downside, the next key level is $1.117 and, if price breaks that, keep an eye on the lower trend line.

Zooming out to the daily chart on EURUSD, we see that the key level we mentioned is also the 61.8% Fibonacci support level.Screenshot 2020-06-23 at 09.39.36

We are seeing a similar situation on GBPUSD so keep an eye on these trend lines.

This is also a situation where an indicator like the Stochastic Oscillator can help as we are currently showing an overbought signal.

In fact most GBP pairs are showing us the same pattern including GBPJPY.

…and GBPCHF where we see that the next key level below was previous support from mid-May.

That’s all for now.  Happy trading with Valutrades and we will see you next week.

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