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

Forex: Question mark on monthly resistance level for EUR/USD

With the US dollar (USD) poised for lower terrain, this could underpin the euro (EUR) and call into question the reliability of resistance at US$1.1457 on the EUR/USD. If the pair concludes north of the 50-month simple moving average (SMA) at US$1.0914 this month and above resistance-turned-possible support from US$1.1134, the pendulum may swing in favour of upside towards resistance between US$1.2028 and US$1.1930. This area comprises an equal AB=CD resistance, horizontal resistance, and a gathering of Fibonacci ratios. 

Commodities: Decision point zone remains in view on Spot Gold

Daily Timeframe:

Those who read last week’s edition may recall that I highlighted a possible correction could unfold from all-time highs of US$3,500, given Spot Gold (XAU/USD) is trading at overbought levels not seen since 2007. With price now within touching distance of a daily decision point area between US$3,193 and US$3,245, this could be a zone trend followers closely monitor for dip-buying opportunities. However, as noted, a whipsaw through the aforementioned decision point base into support from US$3,148 is also possible.

Equities: Another AB=CD formation for the S&P 500?

Daily Timeframe:

Following a low of 4,835 on 7 April – which touched gloves with an ‘alternate’ AB=CD support (1.272% Fibonacci projection ratio) at 4,983 – the S&P 500 index is on course to pencil in an ‘equal’ AB=CD resistance (100% projection ratio) at 5,746. Notably, the 5,746 level is accommodated by a 1.618% Fibonacci projection ratio at 5,718, as well as a nearby 61.8% Fibonacci retracement ratio at 5,652.

Also of technical relevance, the market index has completed the dreaded ‘Death Cross’, which is the 50-day SMA at 5,645 crossing below the 200-day SMA at 5,746 (converges with the above-noted resistance zone), and suggests that a longer-term downtrend could be on the cards.

Cryptocurrency: Things are looking up for BTC/USD

Daily Timeframe:

Following a near-test of support between a monthly level of US$68,926 and a daily level of US$73,575, price action on the daily timeframe of BTC/USD (Bitcoin versus the US dollar) recently ventured north of the 200- and 50-day SMAs at US$80,869 and US$86,517, respectively, as well as above trendline resistance, extended from the all-time high of US$109,580. Leaving behind a support level of US$88,622 (previous resistance) and shifting focus towards the widely watched US$100,000 level has potentially paved the way for further upside.

Charts created using TradingView

Written by FP Markets Chief Market Analyst Aaron Hill

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