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The Pattern Pulse—8 February 2024

The Pattern Pulse—8 February 2024, FP Markets

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.

The Pattern Pulse—8 February 2024, FP MarketsCommodities: 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.

The Pattern Pulse—8 February 2024, FP MarketsEquities: 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.

The Pattern Pulse—8 February 2024, FP MarketsCryptocurrency: 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.

The Pattern Pulse—8 February 2024, FP MarketsDISCLAIMER: The information contained in this material is intended for general advice only. It does not consider your investment objectives, financial situation or particular needs. FP Markets has made every effort to ensure the accuracy of the information as at the date of publication. FP Markets does not give any warranty or representation as to the material. Examples included in this material are for illustrative purposes only. To the extent permitted by law, FP Markets and its employees shall not be liable for any loss or damage arising in any way (including by way of negligence) from or in connection with any information provided in or omitted from this material. Features of the FP Markets products including applicable fees and charges are outlined in the Product Disclosure Statements available from FP Markets website, www.fpmarkets.com and should be considered before deciding to deal in those products. Derivatives can be risky; losses can exceed your initial payment. FP Markets recommends that you seek independent advice. First Prudential Markets Pty Ltd trading as FP Markets ABN 16 112 600 281, Australian Financial Services License Number 286354.



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