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: EUR/USD Eyeing Possible Whipsaw

Following yesterday’s FOMC-induced advance from daily support between $1.0726 and $1.0739, chart studies on the daily timeframe demonstrate the scope to navigate higher terrain until reaching a resistance zone between $1.0920 and $1.0883.

Given the daily structure and having seen H1 price trading within striking distance of $1.08 support, this could prompt buyers at this level. However, with support positioned below the big figure at $1.0795, a whipsaw below $1.08 into the said support could be seen before buyers attempt to make a show.

Commodities: Wheat on the Doorstep of Technical Support

Daily Timeframe –

Versus the US dollar, the price of wheat is within close proximity of support from $622.45, which happens to be joined by ascending support, taken from a high of $583.20. Assuming a response from the support area, resistance can be seen overhead at $656.94.

Equities: Rising Wedge for the Dow, Anyone?

Weekly Timeframe –

While the majority of major US equity indexes are refreshing all-time highs, the Dow Jones Industrial Average (Dow) is in the process of pencilling in a rising wedge pattern, drawn from 39,889 and 37,611. This is also accompanied by the Relative Strength Index (RSI) forming negative divergence.

Does this mean the Dow is likely to break lower and attack support at 36,573? No, not necessarily. This could be just a case of the market index taking a breather before resuming its upward trajectory. However, should a breakout below the lower boundary of the rising wedge unfold, sellers may get involved, targeting support.

Cryptocurrency: LTC/USD Recoiling from Support

Daily Timeframe –

The price of Litecoin versus the US dollar (LTC/USD) recently rebounded from support at $77.48. This level is noteworthy given its historical significance as both support and resistance. Overhead, resistance calls for attention at $84.05 in the form of an ascending line (taken from the low of $70.83) and a descending line (from a high of $89.63).

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