Your weekly outlook of technical patterns and structure.

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

Forex: US Dollar Index Eyeing Support

Daily Timeframe –

Having seen resistance breached at 104.15 this week, with sufficient oomph to trap breakout buyers and fill sellers’ protective stops, a retest of support coming in from 103.62 could be on the table before potentially refreshing year-to-date highs. Adding some credibility to the aforementioned support level is the early uptrend brewing on the daily chart (price action: higher highs and higher lows) and the 200-day simple moving average (SMA) at 103.60 sharing chart space with the level.

Commodities: Fakeout Beneath $2,000 on XAU/USD?

Daily Timeframe –

Since rejecting weekly resistance at $2,075 at the end of 2023, the precious metal has been flirting with retesting the widely watched $2,000 level.

While this psychological barrier will attract dip-buying, a whipsaw of this level could be on the table if challenged, potentially chalking up what is referred to as a Bear Trap. The rationale behind a possible whipsaw is what lies beneath $2,000: support between $1,971 and $1,986—made up of an AB=CD bullish pattern (100% projection ratio), horizontal support as well as a number of Fibonacci ratios.

Equities: S&P 500 within a Stone’s Throw from the 5,000 Level!

Daily Timeframe –

Following yesterday’s 0.8% gain and refreshing yet another all-time high at 4,999, the S&P 500 is now within striking distance of shaking hands with the 5,000 level. Note that the index first hit 4,000 at the beginning of April 2021, so that’s a 1,000-point gain in less than three years!

With both the 50-day and 200-day simple moving averages (SMA) pointing north, clearing the 5,000 level could unearth a bullish breakout scenario (the move would likely see additional interest were a retest of the breached level to form). Alternatively, a rejection at 5,000 throws light on a nearby support area from 4,869-4,903, shadowed closely by another layer of support from 4,818.

Cryptocurrency: BTC/USD Poised to Test Major Resistance

Weekly Timeframe –

Following a hammer candlestick pattern formed from support at $38,809 in January, aside from last week’s indecisiveness, bulls have been on the offensive this week and are poised to connect with familiar resistance at $45,968.

Should follow-through buying materialise north of the said resistance level, the technical pendulum swings in favour of reaching beyond the $50,000 level to challenge nearby resistance at $51,952.

Therefore, resistance on the weekly timeframe at $45,968 is a key watch going forward.

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