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: AUD/USD Breakout Higher?

Overnight, the AUD/USD (Australian dollar versus the US dollar) rallied higher and has seen the pairing maintain its position at the underside of a monthly symmetrical triangle (taken from US$0.7158 and US$0.6170). With price nearing the apex of the formation, a breakout could soon be upon us.

Meanwhile, price action on the daily timeframe shows buyers and sellers squaring off between a support area at US$0.6565-US$0.6588 and a resistance level at US$0.6627. The daily support area should maintain its position and daily price venture north of resistance in order to achieve a breakout above the monthly chart’s symmetrical triangle. This would also open the door to daily resistance at US$0.6715 as an initial upside target for breakout buyers.

Commodities: Gold Poised to Explore Unchartered Territory

Daily Timeframe –

Versus the US dollar, the price of gold (XAU/USD) continues to test the mettle of the upper limits of an ascending channel, taken from the high of US$2,450. This follows the all-time high formed at US$2,483 in mid-July.

While momentum to the upside has slowed (note the difference between price action in the black box and the ascending channel), buyers exhibit strength at the upper boundary of the said channel resistance. As you can see, sellers have failed to deliver much in the way of any meaningful downside at the upper channel, highlighting that buyers could be gearing up to explore unchartered territory beyond the recent record high.

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

The S&P 500 remains well-bid heading into the close of the week. This also follows a strong rebound from weekly channel resistance-turned-support last week, an ascending line, taken from the high of 4,607. Follow-through upside from this point could lead the Market Index to challenge all-time highs of 5,669 and possibly venture beyond.

However, price action on the daily timeframe is shaking hands with the lower side of the 50-day simple moving average (SMA), currently trading at 5,455. Sharing chart space with this dynamic value is resistance coming in at 5,488, with airspace above here appearing reasonably clear for a run to those all-time highs mentioned above on the weekly chart.

Therefore, while a reaction from the area between resistance and the 50-day SMA on the daily chart could take shape and perhaps pull the Index back to daily support at 5,324, given the lack of resistance on the weekly scale, a breakout beyond said daily resistance is also on the table which may unmask a bullish scenario to 5,669.

Cryptocurrency: ETH/USD Wedged Between Support and Resistance

Weekly Timeframe –

Longer-term price action on the weekly timeframe for ETH/USD (Ethereum versus the US dollar) shows price action testing support that is made up of two 61.8% Fibonacci retracement ratios at US$2,495 and a 1.272% Fibonacci projection ratio at US$2,361. However, a concern for buyers at support is the 50-week SMA at US$2,691.

A breakout above the 50-week SMA would unlock the door to resistance at US$2,880 while pushing through current support shines the technical light on support from US$2,009.

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