Your weekly outlook of technical patterns and structure.

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

Forex: EUR/USD Taking Aim at Higher Levels

With the Dollar Index taking a hammering yesterday—fuelled on the back of a dovish Fed announcement—technical headwinds on both the monthly and daily timeframes are thin for the EUR/USD now.

As you can see on the daily timeframe, alongside the possibility of a Golden Cross forming and the current uptrend (series of higher highs and higher lows), the currency pair exhibits scope to approach resistance at $1.0997. This is emphasised on the monthly chart: room to target as far north as resistance from $1.1233 (and the 50-month simple moving average at $1.1149). The caveat on the monthly chart, however, is the clear long-term downtrend. Hence, sellers (profit-taking and sell-on-rally shorts) could look to make a show from $1.1233 should we reach this far north.

Commodities: XAU/USD Optimistic North of $2,000

Daily Timeframe –

Spot gold (XAU/USD) investors cheered following the recent Fed statement/projections, pulling the precious metal north of the $2,000 level and adding +2.4%. This followed a rebound from support at around $1,989, which was aided by the Relative Strength Index (RSI) also recoiling from the 50.00 centreline support.

As of current price, the yellow metal is seen testing trendline support-turned-resistance taken from the low of $1,810, with a break here perhaps inviting additional outperformance to the previous all-time high of $2,075 (potential resistance).

Equities: S&P 500 Closing in on All-Time Highs

From the monthly and weekly timeframes, the only technical ceiling standing in the way of the S&P 500 following the Dow and reaching all-time highs (ATH) of 4,818 is resistance on the weekly timeframe at 4,743. WTD, the index is +2.2% in the green, and MTD is higher by +3.1%.

Unquestionably, this remains a buyers’ market for the time being, with traders likely to seek dip-buying scenarios in the direction of weekly resistance. Rupturing the weekly base could also pave the way for breakout buying toward the ATH.

Cryptocurrency: BTC/USD Upside Remains Favoured

Against the US dollar, the price of Bitcoin staged a spirited U-turn from support at $41,500 yesterday and reclaimed a large portion of the recent downside.

As demonstrated on the weekly timeframe, room to navigate higher terrain is evident until resistance between $48,565 and $46,112. Note that the upper and lower boundary of this resistance is made up of a 61.8% Fibonacci retracement ratio and an ‘alternate’ AB=CD bearish pattern that is denoted by a 1.272% Fibonacci projection ratio.

Therefore, further buying will see price test the resolve of offers at daily resistance from $43,828, with subsequent buying opening the door to another layer of daily resistance at $45,525.

Charts: Trading View

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