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: USD Approaching Range Resistance

Daily Timeframe:

The US dollar (USD) remains well bid, with November’s current outperformance positioning the greenback 3.0% higher versus a basket of six international currencies (US Dollar Index), including the euro (EUR).

Consequently, this has placed the Index within striking distance of a reasonably long-term range resistance at 107.19. While a rejection from the range resistance could materialise, a breakout to the upside would be notable and throw light on possible follow-through buying towards highs as far north as 114.78 set in late 2022.

Commodities: Meaningful Correction or Something More for Gold?

Weekly Timeframe:

Versus the USD, November has seen the price of gold (XAU) fall nearly 7.0% so far, on track to print its largest one-month slide since November 2016. Nearby demand at US$2,474-2,530 could be worth noting on the watchlist as a potential base for dip buyers making a show. However, the next obvious support target rests at US$2,291 in the event of a break lower.

Equities: Nasdaq 100 Pencilling in Bullish Pennant Pattern

H4 Timeframe:

It has been an eventful couple of weeks for the US equity space, with major US equity indices reaching record highs across the board.

As seen on the H4 timeframe, price action on the Nasdaq 100 is establishing a potential bullish pennant pattern from the all-time high of 21,182 and 20,946. A breakout to the upside, therefore, might prompt further buying and refresh all-time highs as chart pattern enthusiasts take aim at the pennant’s upside target (obtained by taking the pattern’s ‘pole’ value and extending this from the breakout point). However, failure of the pattern’s structure opens the door to a possible test of support from US$20,452, which currently merges closely with the 50-period simple moving average at 20,436.

Cryptocurrency: Where Next for BTC?

Daily Timeframe:

Bitcoin (BTC) is trading at record highs of US$93,535 versus the USD, and many now appear to be targeting US$100,000 and beyond. While momentum is on the buyers’ side, a correction and possible dip-buying opportunity could still occur before reaching the noted upside target. US$77,274-79,918 support is in view – an opening gap (or ‘window’) – closely shadowed by another layer of support from US$73,212.

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