USDCHF pulls below October’s high [Video]

WTI oil futures sustain bullish bias but with some caution

WTI oil futures (December delivery) are set to close with mild gains for the third consecutive week after struggling to successfully enter the 90 territory.

While the positive trajectory in the momentum indicators promotes a bullish continuation, the 90.57-92.32, which includes the 20- and 50-period simple moving averages (SMAs) on the weekly chart, could ruin further progress. A decisive close above that region would mark a new higher high in the chart, boosting hopes for a positive trend reversal. If that were the case, the spotlight would turn to the flattening 200-day SMA at 97.40, a break of which could lift the price up to the 100.50-101.50 resistance area.

If sellers return, the price could pull into the 85.80-85.00 support region, where the short-term descending trendline drawn from the nine-month low of 76.25 is placed. Another move lower could test the 81.25-80.00 constraining zone before meeting the broken descending trendline near the 76.25 low.

In brief, WTI oil futures are indicating persistent buying appetite, though some caution is required as the price seems to be testing a key resistance area. 

USDCHF pulls below October’s high, bias still bullish

USDCHF’s swift advance ran out of steam near October’s 3½-year high of 1.0147 on Thursday, with the price returning to the red zone early on Friday.

From a technical perspective, buying interest may keep supporting the market as long as the momentum indicators fluctuate within the bullish area. Though, with the stochastics setting a bearish cross above their 80 overbought level, a negative correction may not be surprising.

If the price slips below May’s resistance of 1.0063, the door will open for the ascending trendline currently near 0.9940. A violation at this point could intensify selling pressures towards the 0.9860 constraining zone. Breaking lower, the bears may take a rest within the 0.9785-0.9755 zone, while the broken resistance line drawn from June’s high may also come on the radar in the event of a steeper decline.

Should the bulls drive the price above the 1.0147 ceiling, they will next push for the 2019 resistance territory of 1.0200-1.0234. A successful move higher could clear the way towards the 2016 top of 1.0342.

In summary, although the short-term bias remains tilted to the upside, the second pullback below 1.0147 could motivate some profit-taking in USDCHF.