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

Forex: Despite long-term support, the dollar is eyeing deeper waters

Monthly, Daily and H4 Timeframes:

Although the US Dollar (USD) Index has connected with a monthly support area between 98.72 and 99.67, April’s lower low at 99.01 reached levels not seen since early 2022 and price crossing below the 50-month simple moving average (SMA) at 101.91 potentially questions this support zone.

Bolstering the likelihood of additional downside in the USD are the daily and H4 charts. The former exhibits scope to reach support at 98.58 (and formed a Death Cross [50-day SMA at 104.45 crossing below the 200-day SMA at 104.66]), while the latter completed a bearish pennant pattern (ruptured the lower boundary), extended from 100.64 and 99.01. As you can see, H4 action is currently retesting the underside of the breached pattern’s border.

In view of the above technical surroundings, USD shorts could have some gas left in the tank.

Commodities: Overbought conditions in Gold could prompt a correction into dip-buying territory

Daily Timeframe:

With Spot Gold (XAU/USD) trading at overbought levels not seen since 2007, a correction could occur from the current all-time high of US$3,357. If a correction takes place, dip-buyers may monitor the daily timeframe’s decision point area between US$3,193 and US$3,245. However, do take into account that a whipsaw through the noted zone into support from US$3,148 is also a possibility.

Equities: UK’s FTSE 100 pullback to within striking distance of resistance

Daily Timeframe:

Following a low of 7,536 on 7 April, the FTSE 100 index has pencilled in a robust pullback to 8,196. With this index now trending lower, overhead resistance between 8,482 and 8,391 demands attention. The zone is made up of two horizontal levels, a trendline support-turned-potential resistance (extended from the low of 4,826), and a 61.8% Fibonacci retracement ratio.

Cryptocurrency: BTC/USD testing trendline resistance

Monthly and Daily Timeframes:

Price action on the monthly chart of BTC/USD (Bitcoin versus the US dollar) recently found a floor ahead of a support level at US$68,926. While buyers demonstrate intent, the scope to explore deeper territory is evident. According to the daily chart, buyers and sellers are squaring off at trendline resistance, taken from the all-time high of US$109,580, which, as you can see, has the 50-day SMA circling just north of the line at US$87,194, helping to establish a ‘resistance zone’ for traders to work with. In the event sellers change gear, downside objectives to note are the 200-day SMA at US$80,191, support from US$73,575, closely followed by monthly support mentioned above at US$68,926.

Charts created using TradingView

Written by FP Markets Chief Market Analyst Aaron Hill

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