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: NZD/USD Hugging Range Support

Monthly Timeframe:

Following the Reserve Bank of New Zealand opting for a 50 basis point rate cut this week, the NZD/USD (New Zealand dollar versus the US dollar) has appreciated in value from familiar support on the monthly timeframe at N$0.5846.

Since mid-2023, the NZD/USD currency pair has been busy carving out a consolidation between the aforementioned support and resistance coming in from N$0.6365. Outside this range, trendline resistance calls for attention (extended from the high of N$0.8836) and ascending support (drawn from the low of US$0.4894).

Commodities: Silver Closing in on Trendline Confluence

Daily Timeframe:

The price of silver versus the US dollar (XAG/USD) is trading at an interesting juncture from a technical point of view.

Price action is seen rebounding from trendline resistance-turned-support, taken from the high of US$32.50. Another trendline support (extended from the low of US$21.93) also merges with the above-noted line (marked with an orange square) and is complemented by 38.2% and 61.8% Fibonacci retracement ratios at US$29.92 and US$29.64.

Equities: Rising Wedge Pattern on S&P 500

Daily Timeframe:

Since early August this year, the S&P 500 has been pencilling in a rising wedge pattern, extended from the low of 5,119 and a high of 5,643. What this demonstrates is that while price action shows an uptrend, momentum is slowing (this will be shown as a negative divergence across many momentum oscillators).

Therefore, a breakout below the pattern’s lower boundary could portend a downside correction, while a breakout to the upside may be viewed as strength and a sign that further outperformance could be seen.

Cryptocurrency: BTC Forming Bearish Harami Candlestick Pattern

Weekly Timeframe:

The BTC/USD (Bitcoin versus the US dollar) weekly chart shows that price is now within striking distance of the US$100,000 milestone. However, this week has seen price form a bearish harami candlestick configuration; this is similar to a bearish inside candle, only the candle’s real bodies are in focus.

Does this mean a reversal could be seen? Not necessarily, as it could just mean the major crypto pair is taking a ‘breather’. Should a correction unfold from current levels, support is absent until as far south as US$70,000, while a breakout north of US$100,000 could prompt further buying.

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