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: EUR/GBP Struggling to Find Grip at Support
Daily Timeframe –
The EUR/GBP cross recently shook hands with support made up of Fibonacci ratios between £0.8408 and £0.8434 (consisting of 78.6% and 88.6% retracement ratios and a 1.618% projection ratio). While buyers have attempted to make a stand from the aforementioned area, the trend has largely favoured bears since November’s top (2023) at £0.8766. A clear descending resistance also warrants attention overhead that may discourage buying, extended from November’s peak.
Given the current structure/trend, traders (and investors) may watch the descending resistance – as well as resistance marked above at £0.8500 – for selling opportunities over the coming weeks.
Commodities: Keep it Simple on WTI Oil
Daily Timeframe –
WTI oil elbowed through resistance at $79.92 on Tuesday and pencilled in a high of $81.82 on Wednesday. The breached resistance could now deliver support if retested, with short-term buyers perhaps taking aim at trendline support-turned-resistance drawn from the low of $67.74.
Equities: S&P 500 Approaching Resistance Zone
Daily Timeframe –
The S&P 500, as well as the Nasdaq, printed yet another record high at 5,488 yesterday!
However, while this evidently remains a buyers’ market, potential resistance is visible overhead in the form of channel resistance, etched from the high of 5,325 and a 100% projection ratio coming in at 5,580. Couple the said area with the Relative Strength Index (RSI) recording its highest overbought signal (76.90) since late 2023, and this could be a location from which countertrend selling unfolds (and profit taking).
Cryptocurrency: ETH/USD Support and Resistance in View
Daily Timeframe –
The price of Ethereum versus the US dollar (ETH/USD) offers two key areas of note at the moment.
To the downside, support demands attention at $3,296, which happens to be joined by a 61.8% Fibonacci retracement ratio at $3,256. Although unlikely to enter the fight yet, a nearby trendline support is also seen, drawn from the low of $1,576.
To the upside, resistance is at $3,732, a level merging closely with a trendline resistance, taken from the high of $3,973, and a 61.8% Fibonacci retracement ratio at $3,740.
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