Your weekly review of technical patterns and structure.

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

Forex: AUD/JPY Eyeing H&S Profit Objective

Daily Timeframe –

Since June 2022, the AUD/JPY currency pair has been busy carving out a Head and Shoulders Top pattern (some may even refer to this as a Complex Head and Shoulders Top) around ¥98.20ish. As evident from the daily timeframe, the neckline—extended from the low ¥90.52—welcomed a downside breach in late 2022 and was subsequently retested as resistance (albeit with some choppy price action) throughout January and February this year.

Assuming we puncture the ¥87.02 20 December low, recent selling throws light on the Head and Shoulders Profit Objective located as far south as ¥83.39.

Bonds: Price Closing in on AB=CD Bullish Pattern for the 2-Year US Treasury Yield

Weekly Timeframe –

The 2-year US Treasury yield has trended northbound since August 2020 and, since October 2022, has chalked up a well-defined correction, shaping an AB=CD bullish pattern. Note that this pattern has yet to complete. Still, given the hesitant tone seen through the current weekly candle (a doji indecision candle), the AB=CD Potential Reversal Zone (PRZ) between 3.111% (1.27% extension) and 3.221% (100% projection) is calling for attention in this market as a possible support.

Commodities: Spot Gold Overbought at $2,000?

Daily Timeframe –

The price of gold (XAU/USD) recently shook hands with a clean technical ceiling, consisting of the widely watched $2,000 psychological level, an ascending support-turned resistance taken from the low $1,677 and an overbought signal out of the Relative Strength Index (RSI).

While the aforementioned resistances have attracted profit-taking, traders have to consider that not only is the current uptrend favouring buyers here, but neighbouring support from $1,949 has also proved stubborn. Consequently, the yellow metal could simply be taking a breather before engulfing current resistance and approaching $2,070 tops.

US Equities: Nasdaq 100 Forms Daily Bearish Outside Day at Resistance

Daily Timeframe –

As shown on the daily timeframe of the Nasdaq 100—an index weighted by market capitalisation that houses 100 of the largest non-financial companies listed on The Nasdaq stock market—price action pencilled in a bearish outside day candlestick pattern (this is not an engulfing pattern as these formations focus on the real candle bodies) at resistance from 12,847 as well as the upper Bollinger Band. As a result, bears could step in as price reverts to its 20-period average (derived from the Bollinger Band formula).

Cryptocurrency: Harmonic Gartley Pattern for Litecoin?

Daily Timeframe –

The daily timeframe of Litecoin against the US dollar (LTC/USD) is on the verge of completing a Harmonic Gartley pattern, boasting a Potential Reversal Zone (PRZ) between $98.37 and $96.86. While this area may welcome whipsaws, traditional rules of engagement—check out Scott Carney’s work on Harmonics—call for stops to be positioned beyond the X-point of the pattern, therefore allowing any trade some breathing room beyond the PRZ. Furthermore, the 38.2% and 61.8% Fibonacci retracement ratios, derived from legs A-D (Leg D has yet to complete), are traditionally recognised as Pattern Profit Objectives.

Charts: TradingView

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