Gold prices produced a bearish Dark Cloud Cover candlestick pattern at downtrend resistance set from August 2020, hinting that a reversal may be ahead. Breaking below initial support anchored at 1750.78 may set the stage for downward extension toward 1717.89. The major bottom at 1676.91 comes into play thereafter. Neutralizing the bearish bias seems to demand a...
EUR/USD has broken rising counter-trend support, hinting that the next leg of the near-term downtrend may be afoot. Resistance-turned-support marked by swing tops from June and March 2020 is anchored at 1.1423. Neutralizing the near-term bearish setup probably demands a break and close above 1.1577. That might open the door for a test of subsequent resistance...
Copper prices are recoiling from confluent resistance at 4.4620. This is marked by the underside of two recently-broken uptrend supports, the upper bound of a seven-month price congestion zone, and a downward-sloping trendline emanating from the May 10 high. A daily close under swing-low support at 4.2060 may act to confirm downtrend resumption, initially setting...
Negative RSI divergence on a test of resistance below 1.19 hints EUR/USD is losing upward momentum and may reverse lower. Looking for a close below 1.1770 to confirm.
Copper prices are retesting support-turned-resistance in the 4.26-4.45 zone, marked by the intersection of a six-month inflection area, the uptrend from the Covid-induced March 2020 low, and a neckline support from early March. Signs of indecision in the daily candlestick structure and negative divergence on short-term momentum studies warn of topping. In all,...
AUDUSD is breaking through range support after completing a bearish Rising Wedge pattern, suggesting that the downtrend may be accelerating anew. Support in the 0.7222-44 zone is now in focus. A break below that puts into view the measured-move objective of a Head and Shoulders topping pattern formed from the start of the year (0.7120-30 zone). The 0.70 figure...
GBP/USD broke rising trend support having recoiled from resistance near the 1.40 figure, hinting that the broader down move emanating from the Double Top in the 1.4210-51 zone is resuming. Confirmation on a close below 1.3879 looks likely to expose a dense support bloc in the 1.3730-1.3800 region. Reclaiming a foothold above 1.40 looks like a pre-requisite for...
Fed funds futures markets seem to imply that the Fed is likely to begin rate hikes in late 2022, delivering 100bps through 2024. The tightening cycle is apparently seen stopping (or at least pausing) in 2025. The US Dollar has traded higher against major currencies (AUD, JPY, EUR, GBP) as rate hike pricing in the coming years shifted up after the June FOMC meeting.
NZD/USD is on pace to break support in the 0.6923-43 zone. Confirmation on a daily closing basis looks likely to expose the 0.6758-98 area. Neutralizing selling pressure probably requires a push through back-to-back resistance running up through 0.7138.
AUD/USD is on the verge of confirming a break of major support clustered around the 0.74 figure, opening the door for downward extension to test the 0.7222-44 zone. That would mark the next major leg in a move realizing the implications of a Head and Shoulders top carved out since the start of 2021. The setup implies a measured move down to the 0.7120-30 area.
AUD/USD broke below the long-standing 0.7664-91 support zone, seemingly opening the door for a run at the neckline of a large Head and Shoulders topping pattern (0.7564). A daily close below that would imply a measured move lower toward the 0.71 figure. A notable hurdle is eyed near the 0.74 mark along the way.
EUR/USD looks to be completing a bearish Rising Wedge on the 8-hour chart. Negative RSI divergence reinforces. Confirmation eyed on a close below 1.2171.
AUD/USD hold at resistance in the 0.7820-49 zone keeps in play the possibility of forming a large, bearish Head and Shoulders (H&S) pattern. A daily close below initial support at 0.7677 – a barrier reinforced by a rising trend line – probably opens the door to challenge the H&S neckline. Breaching that would complete the top formation and imply a measured move...
WTI crude oil prices may be forming a double top in the 66-68 area as negative RSI divergence speaks to ebbing upside momentum. Breaking below 63.53 would get the near-term uptrend reversed and set the stage for the first leg toward confirmation. Interim support at the $60/bbl figure follows. Completing the double top calls for a subsequent daily close below the...
I bought USDCAD at 1.2649 and have since booked profit on half of the position . The rest of the trade will remain open to take advantage of any further gains ahead. The stop-loss has been moved to the breakeven level. Near-term resistance is at 1.3002, the 14.6% Fibonacci expansion, with a break above that on a daily closing basis exposing the 23.6% level at...
The British Pound turned lower against the Japanese Yen as expected, breaking support guiding the uptrend since mid-April. I entered short at 192.83, initially targeting 190.91. A stop-loss will be activated on a daily close above 194.33. I will take profit on half of the position and move the stop to the breakeven level (192.83) once the first objective is...