Your weekly review of technical patterns and structure.

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

Forex: Dollar Index Rebounding from Channel Support

Daily Timeframe –

Since late September 2022, price action on the US Dollar Index has forged a series of lower lows and lower highs: a downtrend. And since late November, movement has been working between the boundaries of a descending channel, extended from 107.99 and 103.45. Thursday’s action is showing signs of rebounding from the channel’s support, accompanied by support out of the Relative Strength Index (RSI) at 32.09.

Bonds: Double-Top Pattern Seen on Weekly RSI for the 10-Year Yield

Weekly Timeframe –

Following on from last week’s Pattern Pulse, the benchmark 10-year US Treasury yield has recently pushed through the neckline (51.34) of a double-top pattern (81.58) and the 50.00 centreline on the weekly timeframe’s Relative Strength Index (RSI). This indicates negative momentum and signals further downside to price support at 3.200%, which happens to converge with a 50-week simple moving average at 3.179%.

Commodities: Trendline Resistance Breach on Silver?

Weekly Timeframe –

Week to date, spot silver (XAG/USD) is higher by nearly 4.0% and on the verge of overthrowing trendline resistance, taken from the high $30.14. A decisive break here technically paves the way for an approach towards Quasimodo resistance from $25.39.

European Equities: Completed Bullish Pennant Pattern on EU50

Daily Timeframe –

The Euro Stoxx 50 index recently pencilled in a breakout above the upper boundary of a bullish pennant formation, drawn from 4,196 and 4,090. In light of this pattern being recognised as continuation structure, follow-through buying could unfold to as far north as 4,603.

Cryptocurrency: Bullish Pennant Failure on Ethereum

Weekly Timeframe –

After completing a picture-perfect AB=CD bullish pattern at the 100% projection of $887.59 in mid-2022, Ethereum against the US dollar (ETH/USD) has been busy chalking up a bearish pennant pattern, marked between $880.00 and 2,031.56. While bearish pennants formed within defined downtrends generally breakout to the downside, we have seen Ethereum punch higher and take out the upper limit of the pennant. Could this be a trend reversal signal?

Charts: TradingView

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