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: Onwards and Upwards for AUD/USD

The AUD/USD currency pair is interesting at the moment.

From the monthly chart, a recent upside move in the currency pair has seen price inch above key resistance, made up of a horizontal base from $0.6670 and an upper boundary derived from a symmetrical triangle, or ‘coil’, drawn from the high of $0.7158. This has potentially opened the door to the $0.6872ish peaks on the monthly chart, though with the Relative Strength Index (RSI) still sub-50.00, this may discourage some technical buying.

On the daily chart, however, the landscape favours bulls following the breach of resistance at $0.6690 (fuelled by the miss in yesterday’s US ISM Services PMI print). Limited resistance is seen overhead on the daily chart until $0.6865, which aligns with the upward target on the monthly chart at around $0.6872.

Commodities: Oil Prices Eyeing Resistance?

Daily Timeframe –

WTI oil recently retested a trendline resistance-turned-support line, extended from the low of $67.74. This market has been strongly trading to the upside since pencilling in a low of $72.43 at the beginning of June, with corrections few and far between.

Should buyers clear offers around the $84.42 peak (26 April), limited resistance is seen until $88.29, situated just north of the $87.60ish tops formed in April. Therefore, a break of $84.42 could be recognised as a bullish cue to target the $88.30ish neighbourhood.

Equities: Nasdaq 100 at All-Time Highs

Daily Timeframe –

Following the completion of a bullish pennant pattern, taken from 19,977 and 19,472, the Nasdaq 100 ended Wednesday’s session refreshing record highs of 20,186. Bullish pennant patterns CAN form in the direction of the underlying trend in strong upward markets (this is not a rising wedge as these are typically longer-term structures).

While a retest of the recently breached upper boundary could be seen (arrows), the current pattern formation and the underlying strength of the trend in this market suggest further buying could take place towards the bullish pennant pattern’s profit objective at 20,558.

Cryptocurrency: BTC/USD on the Ropes; Support in View

Week to date, bitcoin is down -4.4% versus the US dollar (BTC/USD). This follows a dreadful month in June, shedding -11%. As evident from the weekly timeframe, this has positioned the major crypto pairing within a stone’s throw from support coming in at $56,796, which happens to converge closely with channel support, extended from the low of $60,717 (which could also serve as the lower boundary of a bullish flag pattern). Should price overthrow bids at aforementioned support, support from $51,948 warrants attention as the next downside objective.

Across the page on the daily timeframe, price engaged with (and recently consumed) the downside support target at $60,165 derived from a double-top pattern taken from just under $72,000. With $60,165 in the rear-view mirror, a break of the $56,478 May low may prepare the ground for additional underperformance towards a decision point area at $50,601-$53,015.

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