Your weekly outlook of technical patterns and structure delivered directly.

The FP Markets Research Team scans the financial markets for you, highlighting clear and actionable technical structures.

Forex: USD Powering Higher

Monthly/Daily Timeframes:

October has been impressive for the US dollar (USD) so far, up more than 2.0% month to date (as per the US Dollar Index) and trimming back a hefty portion of the three-month losing streak.

Price action on the monthly timeframe has put in a possible bottom a whisker ahead of the 50-month simple moving average (SMA) at 100.23, with room to continue punching higher. On the daily chart, the unit also recently manoeuvred above resistance at 102.78 (now marked potential support), unlocking the door for further outperformance towards the 200-day SMA at 103.75.

Commodities: Easy as AB=CD for Gold?

Daily Timeframe:

The Research Team recently released a post on gold’s price action (XAU/USD), which warrants a second mention. The yellow metal is on the doorstep of completing an ‘alternate’ AB=CD around the 1.272% Fibonacci projection ratio of US$2,597.

Alongside the clear-cut uptrend, the AB=CD configuration is complemented by support from US$2,590, a neighbouring trendline support (extended from the low of US$1,984), and the Relative Strength Index gearing up to retest the 50.00 centreline and pencil in positive hidden divergence.

Equities: S&P 500 Whipsaw Possibility

Daily Timeframe:

Yesterday, the S&P 500 refreshed its all-time high of 5,796, and investors are now likely looking for the next dip-buying opportunity.

One approach may be to enter long on the next dip and position protective stop-loss orders beneath the recent higher low of 5,674. Another approach could be to wait and see if the Index whipsaws beneath said higher low – a move that takes out neighbouring stops (sell orders) – and tests support around 5,656.

Cryptocurrency: BTC/USD Flirting with 200-Day SMA

Daily Timeframe:

Since early August, Bitcoin versus the US dollar (BTC/USD) has been testing the mettle of the 200-day SMA support, currently at US$60,342. As you can see, the major crypto pairing is battling for position between said SMA and trendline resistance, extended from the all-time high of US$73,845.

A breakout higher has resistance to target at US$68,486, while a breakout south could see the unit take aim at support coming in from US$47,963.

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