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

Forex: AUD/NZD Testing Area of Confluence; Further Selling?

Daily Timeframe:

Following the pullback from lows of N$1.0903 on 20 March in the AUD/NZD cross (Australian dollar versus the New Zealand dollar) – a move that also completed a longer-term double-top pattern at N$1.1180 – buyers and sellers on the daily chart are squaring off at resistance from N$1.1002. Complementing this area is a trendline that has turned from support to resistance (from the low of N$1.0564), and a 38.2% Fibonacci retracement level at N$1.1008.

Commodities: Spot Gold Still Has Room to Explore Higher Territory

Monthly and Daily Timeframes:

Following Spot Gold (XAU/USD) rebounding from a daily decision point zone at US$2,983-US$3,004 (a noted area to watch in last week’s Pattern Pulse), the yellow metal has climbed to a fresh all-time high of US$3,148. Technically, as I underscored in the previous analysis, I believe Gold bulls still have room to extend to the upside to at least a monthly resistance zone between US$3,264 and US$3,187 (1.618% and 1.272% Fibonacci projection ratios, respectively). However, I also noted that Gold longs should consider that price is currently overbought, according to the monthly chart’s Relative Strength Index, which resides within overbought terrain and is shaking hands with familiar long-term resistance at 87.31-82.20.

Equities: Double-Top Pattern for the Dow Jones Industrial Average

Weekly Timeframe:

A long-term, double-top formation has emerged from the all-time highs of 45,073 on the weekly chart of the Dow Jones Industrial Average. With the pattern’s neckline breached (derived from the low of 41,844), chartists will likely target the structure’s profit objective, which stands at 38,613.

Cryptocurrency: LTC/USD Poised for Further Selling

Daily Timeframe:

Price action on the daily chart of LTC/USD (Litecoin versus the US dollar) recently marched beneath support from US$87.56 (now marked resistance) and trendline support, extended from the low of US$49.12. This has paved the way south for further underperformance towards support coming in at US$74.37.

Charts created using TradingView

Written by FP Markets Chief Market Analyst Aaron Hill

DISCLAIMER:

The information contained in this material is intended for general advice only. It does not take into account 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.