Your weekly outlook of technical patterns and structure.

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

Forex: Dollar Index

Daily Timeframe –

The US Dollar Index—a geometric-weighted average value of the USD against six major currencies—recently confronted its 200-day simple moving average (SMA) at 103.62. Buyers and sellers continue to battle for position around this dynamic value. However, buyers are technically bolstered by the Relative Strength Index (RSI), seen rebounding from just north of its oversold threshold (30.00), and the lower Bollinger Band potentially offering a floor to work with (set to two standard deviations of the 20-day SMA).

With that being the case, resistance could be targeted at 105.04; alternatively, nudging beneath the 200-day SMA opens the door to support at 102.16.

Commodities: Spot Silver (XAG/USD)

H4 Timeframe –

Spot silver in $ terms (XAG/USD) is working between support at $23.31 and resistance at $23.97, establishing what many technicians will recognise as an early bullish pennant formation. Widely acknowledged as a continuation chart pattern (albeit not always), a breakout to the upside here, one that preferably also punctures neighbouring resistance at $23.97, could be seen.

Supporting a move higher is the Relative Strength Index (RSI) holding off its 50.00 centreline (positive momentum) and the immediate trend directed north. Should a breakout higher materialise, resistance calls for attention at $24.86, a base accompanied by a 100% projection ratio (an equivalent AB=CD pattern) at $24.93.

Equities: S&P 500

Continuing from the previous week’s release, having noted that there’s scope to continue exploring higher terrain on the monthly and weekly timeframes (weekly resistance is not expected until 4,595), price action on the daily timeframe helped reaffirm this bullish presence by rupturing resistance at 4,541 (September top) earlier this week (now marked support).

Overhead, daily resistance at 4,578 (set just south of the weekly resistance mentioned above at 4,595) is seen as the next logical upside target for bulls in this market.

Ultimately, buyers remain at the wheel for the time being, with a retest of 4,541 to possibly be seen as a dip-buying opportunity.

Cryptocurrency: BTC/USD

Against the US dollar, the price of bitcoin continues to engage with channel resistance on the weekly chart, drawn from the high of $31,050. As you can see from the weekly timeframe, neighbouring resistance is at $38,523, together with the Relative Strength Index (RSI) testing overbought space (the highest level since early 2021).

Meanwhile, price action on the daily timeframe is challenging resistance at $37,624, which, when joined by resistance on the weekly timeframe at $38,523, offers a logical area of resistance to work with. However, having seen both the weekly and daily timeframes trending higher and the lack of selling evident from the aforementioned resistance zone on the daily chart (yet to print any meaningful low), there is a case for further outperformance for BTC/USD.

Charts: Trading View

DISCLAIMER: 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.