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The Pattern Pulse – 23 May 2024

The Pattern Pulse – 23 May 2024, FP Markets

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/USD Shaking Hands with Possible Trendline Support

Daily Timeframe –

Since pencilling in a bottom at $1.0601 in April of this year, Europe’s single currency has rallied against the US dollar and established clear higher highs and higher lows (an uptrend).

From the EUR/USD’s daily chart, price action recently rejected resistance at $1.0883, formed a moderate correction within the trend, and led the pair to retest a trendline resistance-turned-potential support line taken from the high of $1.1139. Should buyers bid from the current price, this could lead the major pair back to $1.0883 and perhaps take a run at another layer of resistance from $1.0920.

The Pattern Pulse – 23 May 2024, FP MarketsCommodities: Gold Open to Dip-Buying?

Daily Timeframe –

Everyone’s favourite yellow metal (spot gold [XAU/USD]) ended Wednesday at session lows, extending the retracement slide from recent all-time highs of $2,450. This opens the door to possible dip-buying opportunities at the 61.8% Fibonacci retracement ratio at $2,343, a level complemented by a local trendline resistance-turned-potential support extended from the high of $2,431 and an ascending support line, taken from the low of $2,149.

In the event that buyers make a stand at current support, the precious metal could be looking at fresh record highs in the not-so-distant future.

The Pattern Pulse – 23 May 2024, FP MarketsEquities: S&P 500 Offering Potential Bullish Pennant Pattern

Daily Timeframe –

The S&P 500 recently refreshed its all-time high of 5,325 in recent trading and appears poised to chalk up a bullish pennant pattern formation drawn from 5,325 and 5,283.

With the trend clearly still leaning in favour of bulls at the moment, a breakout above the pennant pattern’s upper limit could trigger further outperformance for this market index. However, were a correction to play out, support at 5,261 and a neighbouring decision point area at 5,210-5,240 could be a zone that welcomes dip buyers. Either way, the technicals continue to support buyers for the time being, but for now, at least, it appears to be a waiting game.

The Pattern Pulse – 23 May 2024, FP MarketsCryptocurrency: All-Time Highs in the Crosshairs for ETH/USD

Daily Timeframe –

ETH/USD bulls have made a strong comeback in recent days. Following Monday’s +13.0% advance and Tuesday’s +7.0% push, the major altcoin is within reach of challenging all-time highs of $4,092. Following the break of key resistance at $3,677 (now serving as support) and April’s high of $3,726, the path of least resistance is towards all-time highs.

You will note that price action formed an indecision candle on the retest of $3.677 as support, with buyers seemingly in command as of writing.

The Pattern Pulse – 23 May 2024, FP MarketsDISCLAIMER: The information contained in this material is intended for general advice only. It does not consider your investment objectives, financial situation or particular needs. FP Markets has made every effort to ensure the accuracy of the information as at the date of publication. FP Markets does not give any warranty or representation as to the material. Examples included in this material are for illustrative purposes only. To the extent permitted by law, FP Markets and its employees shall not be liable for any loss or damage arising in any way (including by way of negligence) from or in connection with any information provided in or omitted from this material. Features of the FP Markets products including applicable fees and charges are outlined in the Product Disclosure Statements available from FP Markets website, www.fpmarkets.com and should be considered before deciding to deal in those products. Derivatives can be risky; losses can exceed your initial payment. FP Markets recommends that you seek independent advice. First Prudential Markets Pty Ltd trading as FP Markets ABN 16 112 600 281, Australian Financial Services License Number 286354.

 

 

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