Your weekly outlook of technical patterns.
The FP Markets Research Team scans the financial markets for you, highlighting clear and actionable technical structures.
Forex: Inverted Head and Shoulders Pattern on NZD/USD
Daily Timeframe:
Versus the US dollar (USD), the New Zealand dollar (NZD) has been on the ropes since October 2024, with rallies swiftly sold. The new year, however, kicked off pencilling in a complex inverted head and shoulders pattern off US$0.5540 – lows not seen since late 2022.
As evident from the daily chart, Monday witnessed the NZD/USD overwhelm the pattern’s neckline (taken from the high of US$0.5692), completing the pattern and unearthing its profit objective at US$0.5787. Therefore, according to this pattern, further upside is anticipated.
Commodities: Gold Nearing All-Time Highs
Daily Timeframe:
According to the current price action on spot Gold (XAU/USD), the precious metal finished a third day in the green on Wednesday and touched gloves with resistance from US$2,758. Previous resistance now serves as possible support at US$2,722.
If Gold were to absorb offers at current resistance, the all-time high would call for attention at US$2,790, closely shadowed by a 1.272% Fibonacci projection ratio at US$2,823.
Equities: Major US Equity Indexes Circling Record Highs
Daily Timeframes:
As you can see from the daily charts of key US equity indices, buyers remain in command north of the 50-month simple moving averages (SMAs). The S&P 500 touched a fresh record high of 6,100 yesterday, with the Dow Jones Industrial Average and the Nasdaq closing in on all-time highs of 45,073 and 22,133, respectively.
Cryptocurrency: BTC/USD Rangebound
Daily Timeframe:
According to technical studies on the daily chart, Bitcoin versus the US dollar (BTC/USD) is now consolidating between support from US$91,591 and US$108,396.
US$100,000 remains a widely watched barrier within the consolidation, along with the 50-day SMA at US$97,615. Despite the ranging action, BTC/USD is entrenched in a bullish trend with a clear upside bias. Consequently, should price action gain a foothold off US$100,000 as support, all-time highs could be on the table.
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