Your weekly outlook of technical patterns and structure.

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

Forex: EUR/USD is Fading Major Resistance

Monthly Timeframe –

The EUR/USD currency pair shook hands with resistance at $1.1222 in July, a level complemented by a 50-month simple moving average at $1.1173. The reaction left behind a notable upper candle shadow and revealed bearish interest at the noted resistance.

While August is poised to end on the ropes (MTD, we are lower by -1.2%), there is a lower shadow to August’s candle (indicating bullish interest). However, given the lack of support on the monthly scale until $1.0516, sellers could remain at the wheel in September and heading into Q4.

Commodities: Golden Cross on WTI Oil, Anyone?

Daily Timeframe –

Poised to record its third day in the green, the price of WTI oil on the daily scale is on track to approach resistance priced at $84.88. The recent upside follows a Golden Cross, which refers to the 50-day simple moving average $77.49) crossing above the 200-day simple moving average ($75.98) and implies that a longer-term uptrend could be on the table. Additionally, you will note that the Relative Strength Index (RSI) has rebounded from the 50.00 centreline, informing traders that we are in a phase of positive momentum, according to this indicator.

Should the unit consume resistance at $84.88, then this may also encourage follow-through buying in the direction of another layer of resistance at $91.22.

Equities: Nikkei 225 Eyeing Double-Top Downside Target

Daily Timeframe –

After breaking a double-top pattern neckline at 32,306 in July, we have seen sellers gradually step in. With the formation of an AB=CD pattern recently completed between 32,860 and 32,586 (upper boundary would be termed as an ‘alternate’ AB=CD structure), this could be an area sellers welcome to target the double-top pattern’s profit objective at 30,809 ultimately.

Cryptocurrency: BTC/USD Testing Underside of 200-Day SMA; Further Downside?

Daily Timeframe –

Price action on the daily timeframe is seen retesting the underside of the 200-day simple moving average at $27,527, following a break lower in mid-August. Technically, a close south of the aforementioned line implies a possible trend change to the downside. However, until the $24,750 low (15 June) is engulfed, many longer-term sellers are unlikely to commit.

Charts: Trading View

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