Your weekly outlook of technical patterns and structure.

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

Forex: USD/JPY Testing Support Confluence

Daily Timeframe –

The USD/JPY has been absolutely crushed in early trade today, down -1.5% as of writing.

The recent downside has led the currency pair to an area of technical support that may draw interest, made up of ascending support drawn from the low of ¥137.24, a 50% retracement ratio and a 200% extension ratio at ¥144.50ish, a 100% projection ratio at ¥145.02 and a deep 88.6% Fibonacci retracement ratio at ¥145.31.

You may also note that aiding the above-mentioned support area (¥144.50-¥145.31) is the Relative Strength Index (RSI) closing in on oversold territory.

Commodities: XAU/USD Touches Gloves with All-Time Highs

Daily Timeframe –

It has been quite the week for spot gold (XAU/USD). Monday observed the yellow metal spike higher and refresh all-time highs at $2,148. However, time spent in unchartered territory was brief and the day concluded forming a bearish outside reversal formation (this is different from a bearish engulfing as the engulfing pattern focusses only on the real candle bodies).

We have since seen price bottom ahead of trendline support taken from the low of $1,810, which itself is positioned north of the widely watched $2,000 level and support from $1,989. Combined, these technical observations could be enough of a floor to pull in dip-buying interest to refresh all-time highs.

Equities: S&P 500 Taking a Breather

From the monthly, weekly and daily timeframes, it is clear that upside momentum has slowed for the major equity index in recent trading. The monthly price is fading space just south of the July top of 4,607, aided by weekly and daily resistances from 4,595 and 4,578.

Despite this resistance, there is unlikely to be much commitment from bears at this point, given the current uptrend and the Relative Strength Index (RSI) indicating positive momentum (>50.00). Should the unit dip south of support on the daily timeframe at 4,541, this could drive bearish flow back to at least daily support at 4,473. Alternatively, pushing north of weekly/daily resistances will expose the July top noted above at 4,607 and daily resistance at 4,653 as an upside target for buyers.

Cryptocurrency: BTC/USD – What a Run!

Weekly Timeframe –

Up nearly 10.0% WTD, BTC/USD has been on a tear of late, clearing a number of key technical resistances. As evident from the weekly timeframe, this led the major crypto to a high of $45,000, as well as connecting with resistance between $46,112 and $42,971 on the weekly timeframe, an area bolstered by a robust overbought signal out of the Relative Strength Index (RSI).

Of technical relevance, the upper boundary of the weekly resistance base is made up of an ‘alternate’ AB=CD bearish pattern (the 1.272% Fibonacci projection ratio).

Charts: Trading View

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