Your weekly outlook of technical patterns and structure.

The research team scans the financial markets for you, highlighting clear and actionable technical structures.

Forex: AUD/NZD Offering Interesting Technical Landscape

Daily Timeframe –

The AUD/NZD cross has been on a tear of late. Rallying ten out of the last eleven days—aided by a potential policy divergence—the current pair recently tested the mettle of resistance at NZ$1.1032. At the time of writing, we are seeing price respond to the level, which could shine light on a correction back to the 200-day simple moving average at NZ$1.0882 while pursuing space north of current resistance unshackles a possible bullish breakout scenario towards resistance at NZ$1.1175.

Commodities: Back to Basics for XAU/USD – Early Trendline Support Breach

Daily Timeframe –

Following resistance forming at $1,981, Wednesday had spot gold ($ terms) venture beneath trendline support taken from the low of $1,616. While this does signal weakness on the buyers’ side, it’s too early to tell whether this break is a fakeout beyond the aforementioned trendline support or a true breakout, which would likely have follow-through selling target support from $1,918.

XAU/USD traders/investors, therefore, will likely watch for the trendline support to deliver resistance if retested as a means of breakout confirmation.

Equities: Nasdaq 100 Overbought?

Daily Timeframe –

We touched on the Nasdaq 100 in last week’s mailer.

As you can see, sellers are now beginning to put in an appearance from an area that boasts strong technical confluence, made up of the upper Bollinger Band (set to two standard deviations based on a 20-day simple moving average at 13,926), the 1.272% Fibonacci projection at 14,477, a deep 61.8% Fibonacci retracement ratio at 14,368 as well as the Relative Strength Index (RSI) departing overbought territory.

Does this imply a mean-reversion play to the 20-day simple moving average?

Cryptocurrency: Diamond Top for XRP/USD, Anyone?

H4 Timeframe –

The H4 timeframe of Ripple against the US dollar (XRP/USD) has chalked up a broadening pattern, taken from $0.52868 and $0.50115 around resistance at $0.53561. These patterns are notoriously challenging to trade in isolation.

However, a diamond top pattern has also since formed (requires a symmetrical triangle to develop adjacent to the broadening pattern – see dashed lines), and a breakout to the downside (beyond the lower ascending line), which can often prove rapid with these configurations, could see price head for at least support at $0.48589.

Charts: TradingView

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