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: Dollar Index Targeting 2023 Lows

With the US Federal Reserve Chairman Jerome Powell communicating it is time to begin policy easing, the US Dollar Index is on track to end August down by -3.0%.

The key observation on the monthly chart is the scope for further downside towards support at 99.67, which shares space with the 50-month simple moving average (SMA) at 99.85 and two Fibonacci retracement ratios around 98.72. Another important observation is price action on the daily timeframe retesting the underside of a breached support level at 101.01 as resistance. Renewed downside momentum from this barrier potentially unearths a bearish scenario towards the monthly support highlighted above.

Commodities: XTP/USD Resistance Ahead

H4 Timeframe –

From the H4 timeframe of Platinum versus the US dollar (XPT/USD), resistance demands attention at US$947.95, a level benefitting from a local ascending support-turned-possible resistance (drawn from the low of US$939.55) and a 38.2% Fibonacci retracement ratio at US$949.06.

However, while the above-noted area offers confluence, long-term resistance is sited just overhead at US$956.36. Therefore, a whipsaw north of the H4 resistance zone should not raise too many eyebrows!

Equities: Nasdaq 100 Testing Support

Daily Timeframe –

Following Nvidia’s earnings release, technical studies reveal support entering the fray at 19,224 on the Nasdaq 100. Interestingly, this support level is complemented by a nearby 1.272% Fibonacci projection ratio at 19,201. Harmonic traders may also view this as an ‘alternate’ AB=CD bullish formation (check the H1 chart).

Some traders will likely seek further bullish confirmation from said support. This could range from drilling down to the lower timeframes and assessing price action to a daily close forming above the 50-day SMA at 19,488.

Cryptocurrency: XRP/USD Poised to Breakout

H1 Timeframe –

Short-term price action on the H1 chart reveals buyers and sellers battling for position between a resistance zone between US$0.5852 and US$0.5816 and an ascending support line, extended from the low of US$0.5453. A breakout to the downside could target support from US$0.5333, while an upside push might see the unit take aim at resistance from US$0.5959.

In a market trending southbound since US$0.6313 (24 August), a breakout lower could be on the table. Alternatively, traders may also want to pencil in the possibility of a whipsaw north of US$0.5852-US$0.5816 to run short-term stops, a move that might see larger traders enter the market from US$0.5959.

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