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 Still on the Ropes

Monthly/Daily Timeframes:

Europe’s shared currency continues to trade on the back foot versus its US counterpart, down more than 3.0% month to date. Interestingly, further underperformance is within view based on the monthly chart demonstrating scope to push as far south as support from US$1.0516. In addition, price action on the daily scale stepped beneath support at US$1.0798 (now being retested as potential resistance) and unfastened the door to support from US$1.0744.

Given the above analysis, EUR/USD bears may remain at the wheel for the time being.

Commodities: Trouble Ahead for Gold?

Monthly/Daily Timeframes:

Gold (XAU/USD) has powered higher this year, climbing 34% year to date and recently refreshing all-time highs of US$2,758. The precious metal is also on track to pencil in its largest one-year gain in 14 years. As you can see from the chart below, despite the trend favouring buyers, resistance is in play on monthly and daily timeframes.

The monthly chart’s Relative Strength Index (RSI) is closing in on an area of resistance between 87.02 and 83.87, bolstered by the convergence of projection ratios at current price between US$2,777 and US$2,723. The daily chart also moulded a bearish outside day reversal candle from channel resistance yesterday (taken from the high of US$2,531). This was also accompanied by negative divergence from the RSI within overbought territory.

Equities: US Equities Nearing Trendline Support

Daily Timeframe:

Trendline supports are visible across key US market equity indices, with the Nasdaq 100 and Nasdaq Composite on the doorstep of testing their ascending lines. Assuming price respects these barriers, we could see the aforementioned indexes refresh all-time highs.

Both the S&P 500 and the Dow 30 are seen correcting from recent all-time highs of 5,878 and 43,325, respectively. Therefore, a test of their respective trendline supports could draw dip buyers to potentially engulf recent record highs.

Cryptocurrency: Trendlines Calling for Attention on BTC/USD

Daily Timeframe:

Following the reaction from trendline resistance earlier this week, drawn from the all-time high of US$73,845, you will note that buyers and sellers are now squaring off at neighbouring trendline resistance-turned-support, etched from the high of US$71,943.

Depending on which line breaks first will help determine subsequent price moves. A breakout higher may have investors take aim at all-time highs, whereas punching south paves the way for a test of trendline support, pencilled in from the low of US$52,607.

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