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: Descending Triangle for the Dollar Index?

Following yesterday’s one-sided move lower in the US dollar (USD), which breached daily support at 104.09 (now a marked resistance level), the H1 timeframe is inching closer to pencilling in a descending triangle, taken from 103.65 and 103.88.

With descending triangles regularly viewed as a continuation structure, a breakout below 103.65 could trigger follow-through selling in the USD, targeting the pattern’s take-profit objective derived from the base value and extended from the breakpoint. However, before sellers commit, they will likely seek a daily close south of support on the daily timeframe at 103.62.

Commodities: Spot Silver Breaches Support

Daily Timeframe –

Following on from last week’s spot silver chart (XAG/USD), local trendline resistance, etched from the high of $32.51, stood its ground, eventually forcing the precious metal south of neighbouring support from $30.73 (now marked resistance) and longer-term trendline support (drawn from the low of $22.31).

You may also acknowledge that price action on the daily chart recently completed (just) a head and shoulders top pattern (blue arrows – head at $31.75).

Therefore, further selling in this market is possible, targeting support from $28.86. However, before sellers shift gears, a retest of resistance (and the breached trendline support) could materialise (black arrows).

Equities: Evening Star Formation at Resistance on S&P 500

Daily Timeframe –

The S&P 500 gapped lower on Wednesday and ended the session at lows, forming what many candlestick enthusiasts would refer to as an ‘Evening Star candlestick pattern’. This is a bearish reversal signal and was established a whisker south of resistance: channel resistance (taken from the high of 5,325) and a 1.272% Fibonacci projection ratio at $5,686 (sometimes called an ‘alternate’ AB-CD pattern, though these are generally traded when the pattern forms against the underlying trend).

However, while we are trading from beneath resistance and have a bearish candlestick reversal signal, this remains a market entrenched in an uptrend, which recently clocked all-time highs of 5,669. As such, any correction seen could be something dip-buyers may look to take advantage of from support at 5,507, particularly where the level merges with channel support (from the low of 5,011).

Cryptocurrency: Ripple on the Ropes versus the US Dollar

Daily Timeframe –

Ripple (XRP) is down nearly 10% compared to the US dollar (USD) today, snapping a three-day winning streak and delivering the XRP/USD pairing to support between $0.5550 and $0.5802. This area of support and resistance boasts strong historical significance, dating back to August 2023.

Should buyers stage a rebound from current support, resistance is at $0.6473, while a breach here unlocks the trapdoor to support coming in at $0.5328.

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