1. Home
  2. »
  3. Trading Knowledge
  4. »
  5. The Pattern Pulse—18 January...

The Pattern Pulse—18 January 2024

The Pattern Pulse—18 January 2024, FP Markets

Your weekly outlook of technical patterns and structure.

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

Forex: AUD/USD Testing Pattern Support

Monthly Timeframe –

Against the US dollar, the Australian dollar has, as of writing, snapped a two-month winning streak and is now on the doorstep of pattern support.

Based on the monthly chart, you will note that the AUD/USD is testing the lower boundary of a symmetrical triangle formation taken from $0.8007 and $0.5506. What’s technically interesting is this ascending base is joined by a descending resistance-turned-support extended from the high of $0.7661.

Is this enough to restore some confidence in the bulls? Drilling down to the H1 timeframe, a double-bottom pattern is forming at $0.6525 and has just completed (neckline breach at $0.6555).

The Pattern Pulse—18 January 2024, FP MarketsCommodities: XAU/USD Fast Approaching Support

Daily Timeframe –

Spot gold (XAU/USD) has recently been on the back foot, movement leading the yellow metal to within striking distance of interesting support between $1,991 and $2,000 (constructed of an AB=CD bullish pattern [100% projection ratio] and a widely watched psychological level).

In a market trending higher—recently refreshing its all-time high at $2,148—the noted support zone could be a location where dip-buyers make a show. A point of note is that AB=CD longs tend to target the 38.2% and 61.8% Fibonacci retracement ratios derived from legs A-D.

The Pattern Pulse—18 January 2024, FP MarketsEquities: Nasdaq 100 Echoing Overbought Conditions

Weekly Timeframe –

Although we have recently witnessed the Nasdaq 100 clock all-time highs at 16,969—made up of the largest non-financial companies listed on the Nasdaq Stock Exchange—upside momentum has noticeably slowed and the market index could be overheated (overbought). This is visible through both price action and the Relative Strength Index (RSI) as well as the slow Stochastic oscillator.

Does this mean the unit will print a reversal? Not necessarily. It could imply a pause (a breather) in price action and consolidate. In fact, you may acknowledge that the weekly price is poised to pencil in a potential bullish pennant pattern.

The Pattern Pulse—18 January 2024, FP MarketsCryptocurrency: BTC/USD Offering a Shooting Star Candlestick Pattern

Weekly Timeframe –

Last week delivered a shooting star (sometimes referred to as a bearish pin bar) candlestick formation off resistance on the weekly timeframe at $45,968.

While the price of BTC/USD is trending northbound (it has been since bottoming in November 2022), the combination of notable resistance and the shooting star bearish candlestick pattern could be sufficient to draw in additional underperformance to support at $38,809. Equally interesting is the Relative Strength Index (RSI) topping within overbought space ahead of resistance at 83.18 and recently dropping under the 70.00 overbought threshold (a bearish signal).

The Pattern Pulse—18 January 2024, FP MarketsDISCLAIMER: The information contained in this material is intended for general advice only. It does not consider your investment objectives, financial situation or particular needs. FP Markets has made every effort to ensure the accuracy of the information as at the date of publication. FP Markets does not give any warranty or representation as to the material. Examples included in this material are for illustrative purposes only. To the extent permitted by law, FP Markets and its employees shall not be liable for any loss or damage arising in any way (including by way of negligence) from or in connection with any information provided in or omitted from this material. Features of the FP Markets products including applicable fees and charges are outlined in the Product Disclosure Statements available from FP Markets website, www.fpmarkets.com and should be considered before deciding to deal in those products. Derivatives can be risky; losses can exceed your initial payment. FP Markets recommends that you seek independent advice. First Prudential Markets Pty Ltd trading as FP Markets ABN 16 112 600 281, Australian Financial Services License Number 286354.



  • The Pattern Pulse—18 January 2024, FP Markets
    • Articles
    • Views

    FP Markets

    FP Markets is an Australian regulated broker established in 2005 offering access to Derivatives across Forex, Indices, Commodities, Stocks & Cryptocurrencies on consistently tighter spreads in unparalleled trading conditions. FP Markets combines state-of-the-art technology with a huge selection of financial instruments to create a genuine broker destination for all types of traders.