Weekly Technical Outlook: Bullish Plays on EUR/GBP and LTC

National Financial Solution > Forex Trading > Weekly Technical Outlook: Bullish Plays on EUR/GBP and LTC

I’m looking at these long-term inflection points on EUR/GBP and litecoin, plus a potential trend continuation play on WTI crude oil.

Take a look!

EUR/GBP Daily Forex Chart
EUR/GBP Daily Forex Chart

This pair has been pacing back and forth between support at the .8500 major psychological mark and resistance at the .9300 handle.

Euro bulls are defending the range bottom, and Stochastic suggests that upside momentum could still pick up. If that’s the case, EUR/GBP could make its way up to the top of the range or until the middle around .8800.

The moving averages could also hold as dynamic resistance, especially with the 100 SMA still below the 200 SMA to signal that sellers have the upper hand.

LTC/USD Daily Chart
LTC/USD 4-hour Chart

How high can litecoin go?

Price is already finding some support at the rising trend line connecting the lows since last month, and a bounce could take it up to the upside targets marked by the Fibonacci extension tool.

The 61.8% level lines up with the swing high around $400 and might be the ultimate near-term profit target, although sustained bullish momentum could take LTC all the way up to the full extension at $483.

The 100 SMA is above the 200 SMA after all, which means that the uptrend is more likely to gain traction than to reverse. At the same time, Stochastic is dipping close to the oversold region to reflect exhaustion among sellers.

WTI Crude Oil: 1-hour

WTI Crude Oil: 1-hour Chart
WTI Crude Oil: 1-hour Chart

Heads up, crude oil traders!

The commodity price is approaching the top of its descending channel and might be due for a move back to the nearby support levels.

Technical indicators suggest that sellers could take over soon, as Stochastic is reflecting overbought conditions while the 100 SMA is below the 200 SMA.

If resistance holds, crude oil could retreat to the channel support at $63.50 per barrel or until the middle at $64.50 per barrel. A break past the channel top, on the other hand, could set off a reversal from the slide!

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