Your weekly review of technical patterns and structure.

The research team scans the financial markets for you, highlighting clear and actionable technical structures.

Forex: GBP/JPY Targeting Ascending Support

Daily Timeframe –

Following the currency pair rejecting the underside of trendline resistance, taken from the high ¥172.13, we can see that the currency pair is on the verge of crossing swords with ascending support, drawn from the low ¥155.64.

Bonds: Price Closing in on 50-Week Moving Average for the 10-Year Yield

Weekly Timeframe –

The benchmark 10-year US Treasury yield is seen on the doorstep of testing the upper side of its 50-week simple moving average, currently fluctuating around 3.379%. While this may be viewed as a location for establishing (dynamic) support, the Relative Strength Index (RSI) suggests otherwise. As you can see, the RSI has recently pushed through the neckline (51.34) of a double-top pattern (81.58) and the 50.00 centreline. This indicates negative momentum and signals further downside to not only price support from 3.203% but also RSI oversold territory.

Commodities: Bearish Trend Remains Strong on WTI Oil

Daily Timeframe –

Refreshing lows to $65.78 on Wednesday reaffirmed the bearish downtrend for WTI, active since March 2022. Should a pullback form from current prices, therefore, resistance could call for attention at $72.73 and will likely be recognised as a sell-on-rally scenario, targeting support coming in from $62.35.

European Equities: Key Daily Support on EU50

Daily Timeframe –

The Euro Stoxx 50 index—houses 50 large companies from 11 Eurozone countries—recently tested a key daily support level, shaped by way of a Quasimodo resistance-turned-support at 4,016. The interesting thing here, aside from the index working with an uptrend since bottoming in early October 2022, is the Relative Strength Index (RSI) pencilling in positive hidden divergence. Note that this commonly strengthens continuation setups within trending environments.

Cryptocurrency: Interesting Scenario Materialising on Ripple

Daily Timeframe –

Based on the daily timeframe of Ripple (XRP/USD), since late January, we have seen the unit respect a descending resistance line, extended from the high $0.4330. However, downside momentum has decreased from mid-February onwards, and buyers appear to be looking to take control. This is shown by the lack of fresh lows and support emerging on the price chart at $0.3524 and the Relative Strength Index (RSI) at 39.82.

Given the above analysis, should buyers continue to make a stand, a descending resistance line break could be seen in the coming days.

Charts: TradingView

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