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: Completed Bearish Pennant Pattern on the US Dollar Index

Daily Timeframe –

The US Dollar Index recently completed a bearish pennant formation, a pattern derived from 104.08 and 105.11. This was accompanied by a break below the 200-day simple moving average (SMA) at 104.43 and follows an early downtrend: a number of lower lows and lower highs have formed since the high at 106.52 on 16 April.

As evident from the daily chart, since the Index broke to the downside we have seen price retest the lower side of the 200-day SMA, which has held as resistance. Should this continue, additional selling could unfold towards support from 103.62, followed by another layer of support at 102.92 and the bearish pennant’s profit objective at 102.74.

Commodities: Platinum Welcomes AB=CD Support

Daily Timeframe –

Versus the US dollar, Platinum observed a modest rebound on Wednesday from AB=CD support at $987.79, which happened to be accompanied by horizontal support at $990. As you can see, the precious metal is trending higher overall, and an AB=CD bullish formation can (and often does) be used to dip buy into the trend.

Technically, harmonic traders traditionally take aim at the 38.2% and 61.8% Fibonacci retracement ratios derived from legs A-D ($1,028 and $1,053).

Equities: Is There No Stopping Nvidia?

Daily Timeframe –

Nvidia (ticker: NVDA) recorded fresh record highs of $1,224 yesterday, hauling the Nasdaq and the S&P 500 along for the ride (both also refreshed all-time highs).

The recent surge higher in the stock left behind an upside gap between $1,166 and $1,174, which, assuming a correction materialises from recent highs (think potential profit-taking, for example), could be an area that dip-buyers make a show from. Support also calls for attention at $1,096.

Cryptocurrency: BTC/USD Breaking Out!

Since March this year, price action on the weekly timeframe has outlined a potential bullish flag pattern, drawn from the all-time high of $73,845 and a low of $60,717. As you can see, the upper boundary is currently being challenged and is poised to cede ground. On the daily chart, the decision point area at $64,612-$66,484 held ground and opened the door to an inverted head and shoulders pattern’s (off $56,478) profit objective at $73,756, which aligns with the major crypto’s all-time high.

Given this technical context, it would appear buyers are set to remain in command and a test of all-time highs should not raise too many eyebrows.

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