Daily Technical Strategy On Currencies & Commodities

USDCHF: With USDCHF reversing almost all of its past week losses to close marginally lower on Friday, risk of further move higher is likely. On the upside, resistance lies at the 0.9762 level with a breach targeting the 0.9800 level. A breather may occur here and turn the pair lower. But if taken out, expect a push further higher towards the 0.9850 level. Its weekly RSI is bullish and pointing higher suggesting further strength. On the downside, support comes in at the 0.9600 level. A turn below here will open the door for more weakness to occur towards the 0.9550 level and then the 0.9500 level. A cut through here will open the door for additional decline towards the 0.9450 level. All in all, the pair remains biased to the upside in the short term.

GOLD: With GOLD declining further on Wednesday following its Tuesday weakness, further downside pressure is envisaged. However, supports at 1104.00/1098.00 zone could present a tough time for the commodity. It requires a convincing break below here to extend further weakness. On the downside, support comes in at the 1100.00 level where a break will turn attention to the 11090.00 level. Further down, a cut through here will open the door for a move lower towards the 1075.00 level. Below here if seen could trigger further downside pressure targeting the 1055.00 level. Its daily RSI is bearish and pointing lower suggesting further weakness. Conversely, resistance resides at the 1120.00 level where a break will aim at the 1135.00 level. A turn above there will expose the 1150.00 level. A violation of here will turn attention to the 1165.00 level. All in all, GOLD remains biased to the downside on pullbacks

EURUSD: The pair may have put in a temporary bottom, having closed higher on a rejection candle ahead of its key support at 1.0847 level. We now envisage a mild recovery higher as long as EUR holds above its June 2015 low at the 1.0807 level. But if violated, expect more weakness to occur towards the 1.0750 level. Further down, support lies at the 1.0700 level where a violation will aim at the 1.0650 level. A break of here will aim at the 1.0600 level with a turn below that level targeting the 1.0550 level. Its daily RSI is bearish and pointing lower, supporting its present weakness. Conversely, resistance comes at 1.0950 level with a cut through here opening the door for more upside towards the 1.1000 level. Further up, resistance lies at the 1.1050 level where a break will expose the 1.1100 level. All in all, EUR remains biased to the downside medium term but faces a recovery.

CRUDE OIL: The commodity extended its weakness on Friday to close the week lower. It also reversed most of its previous week gains. This development has opened the door for more weakness towards its key support at 43.19 zone. On the downside, support resides at the 42.56 level where a break will expose the 42.00 level. A cut through here will set the stage for a run at the 41.00 level. Further down, support resides at the 40.00 level. Its daily RSI is bearish and pointing lower supporting this view. On the upside, resistance resides at the 45.50 level. Further out, resistance resides at the 46.00 level. A break above here will aim at the 47.00 level and then the 48.00 level followed by the 49.00 level. All in all, Crude Oil remains biased to the downside with eyes on the 43.19/42.56 zone.

EURUSD: The pair witnessed a sharp sell off the past week cutting through its key support the 1.0818/08 zone. This development leaves EUR lower as we enter a new week. It will have to maintain below the mentioned support turned resistance to prevent any bullish offensive. But beware of a recovery higher following such a sell off. Support is located at the 1.0700 level but if violated, expect more weakness to occur towards the 1.0650 level. Further down, support lies at the 1.0600 level where a violation will aim at the 1.0550 level. A break of here will aim at the 1.0500 level. Its weekly RSI is bearish and pointing lower supporting this view. Conversely, resistance is comes at 1.0800 level with a cut through here opening the door for more upside towards the 1.0850 level. Further up, resistance lies at the 1.0900 level where a break will expose the 1.0950 level. All in all, EUR remains biased to the downside.