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

Forex: AUD/USD Completes Daily Head and Shoulders Top Pattern

Daily Timeframe:

As evident from the daily timeframe of the AUD/USD currency pair (Australian dollar versus the US dollar), price recently manoeuvred beneath the neckline of a head and shoulders top pattern (US$0.6824), extended from the low of US$0.6697.

With price yet to test the pattern’s profit objective at US$0.6553, the pullback from lows of US$0.6622 (shaped by way of a bullish engulfing pattern) has the pairing within striking distance of testing resistance at US$0.6695. Technically, should the unit hold at resistance, follow-through selling could unfold towards a support area at US$0.6565-US$0.6588, closely followed by US$0.6553.

Commodities: Gold Rangebound at All-Time Highs

Daily Timeframe:

Since forming an all-time high of US$2,531 in late August, gold has been rangebound versus the US dollar (ticker: XAU/USD) between the said high and US$2,470.

Ultimately, although momentum to the upside has slowed in recent months, the trend still favours buyers. Coupled with this trend, and daily price action testing the upper boundary of the noted range, a breakout higher could attract strong buying pressure. Conservative traders will often filter breakouts using simple techniques like waiting for a retest of the breached area to form before committing (as per the red arrows).

Equities: S&P 500 Preparing to Test All-Time Highs?

Weekly/Daily Timeframes:

Just ahead of the all-time high of 5,669, the S&P 500 recently chalked up an evening star pattern on the weekly timeframe. Sellers, however, have been reluctant to commit.

You will also see that daily flow surpassed a double top’s profit objective at 5,472 and rotated higher (if you look at the H4 chart, a clear double-bottom was also established). The subsequent close above the 50-day simple moving average (SMA) at 5,507 signals strength. Should daily price remain above the 50-day SMA, traders could seek bullish setups, targeting tops around 5,651, closely followed by the all-time high.

Cryptocurrency: It Is All about the 200-Day SMA

Weekly/Daily Timeframes:

Week to date, the BTC/USD pairing (Bitcoin versus the US dollar) is up by +10%, reclaiming most of last week’s losses and on track to snap a two-week losing streak. Technically, the crypto pair is rebounding from channel support, taken from the low of US$60,717, located just north of support coming in from US$51,948.

The question is whether buyers have enough gas left in the tank to explore higher terrain, having seen sentiment favour sellers since the pair tested the all-time high of US$73,845. Drilling down to price action on the daily timeframe, the unit is retesting the lower side of the 200-day SMA at US$58,452 (blue circle). A breakout north of here could see price continue higher towards resistance at US$63,791 while rejecting the dynamic value throws light on daily support at US$47,963.

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