Your weekly outlook of technical patterns and structure.

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

Forex: Pennant Pattern Completion for the Dollar Index

Daily Timeframe:

Since October, the US Dollar Index has rallied nearly 6.0%, forming what many technical analysts will recognise as a Golden Cross. This signal indicates a long-term bull trend could be on the table (the 50-day simple moving average crossing above the 200-day simple moving average).

In addition, price action has recently completed a bullish pennant pattern (drawn from the year-to-date high of 108.07 and low of 106.13), opening the door for further upside. Follow-through buying could challenge year-to-date peaks and possibly run for monthly resistance at 109.33 (not shown on the chart below).

Commodities: Spot Gold in Reach of Record Peaks

Daily Timeframe:

The daily price of spot gold (XAU/USD) is within striking distance of all-time highs of US$2,790. Technically, potential resistance currently remains in play from the swing high formed at US$2,721 (you will see price currently teasing this area and showing indecisiveness through an indecision candle) and a little higher up on the curve at US$2,758.

However, according to the clear-cut uptrend, gold remains a buyers’ market for the time being.

Equities: Sign of Things to Come for the Nasdaq?

Daily Timeframe:

With the Nasdaq 100 up 30% year to date, yesterday saw the market index refresh all-time highs at 21,784 and rupture the upper boundary of a rising wedge pattern (drawn from the low [high] of 17,435 [19,938]). This higher breakout signals a resumption in upside momentum, indicating the possibility of further outperformance towards the end of the year.

Cryptocurrency: BTC/USD Attempting to Find Acceptance North of US$100K

Daily Timeframe:

As evident from the daily timeframe yesterday, the price of BTC/USD printed its highest close of all time at US$101,600. Despite the major crypto pair emphasising indecisiveness since 25 November, a strong upside bias remains. Given this, investors will closely watch price action to hold above US$100,000 and form support.

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