Your weekly outlook of technical patterns and structure.

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

Forex: EUR/USD bearish Flag at Support

Daily Timeframe –

From the daily timeframe of EUR/USD, price action has been compressing between two parallel lines to form a potential bearish flag pattern ($1.0448 and $1.0635). With the pair currently testing the limits of the pattern’s lower boundary, a breakout to the downside could be on the table over the coming days.

However, for a breakout lower to unfold, critical support from $1.0517 would need to be dethroned. As of writing, this level is proving troublesome to overcome.

Commodities: WTI Oil Fast Approaching 200-Day SMA/AB=CD Confluence

Daily Timeframe –

As you can see from the daily timeframe of WTI oil, the unit has been on the back foot since tunnelling through the 50-day simple moving average at $86.51. Lower, eyes will likely be fixed on the 200-day simple moving average at $78.14 and the neighbouring AB=CD harmonic bullish formation at $76.57 (denoted by the 100% projection ratio and a 1.618% Fibonacci extension of legs B-C).

Note that moving averages can (and often do) deliver dynamic support and resistance as traders look to employ mean-reversion strategies.

Equities: S&P 500 Rebounded at Support

Daily Timeframe –

The S&P 500—an index listing 503 major US companies—recoiled from noted support on the daily timeframe at 4,104 in recent trading. This has seen the major equity index rally for three consecutive sessions to close on the doorstep of the 200-day simple moving average at 4,243.

Now, technically speaking, trend studies tell us that the trend is lower (series of lower lows and lower highs), but should the index overthrow the aforementioned 200-day simple moving average, this suggests that bulls have some gas left in the tank (potentially stirring breakout buying) and could be headed for resistance at 4,363 and the 50-day simple moving average at 4,350. Of course, rejecting the said 200-day simple moving average would reaffirm the bearish picture and perhaps encourage a sell-on-rally scenario.

Cryptocurrency: ETH/USD Nearing Trendline Resistance

Daily Timeframe –

Upside momentum for ETH/USD has slowed considerably in recent days, forming what many technicians refer to as a rising wedge pattern (between $1,854 and $1,744). What’s technically interesting, nevertheless, is that the price is also closing in on trendline resistance taken from the high of $2,140.

Therefore, a bearish scene could unfold at trendline resistance, one which breaches the lower side of the rising wedge formation.

Charts: Trading View

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