RUT has been moving in a broadening triangle pattern since past 8 months. Although we are seeing new highs and new lows over the past 8 months the RSI (14) has failed to move above 65 consistently which is not a good sign.
EURUSD has been on a tear taking major shorts for a ride. At present prices have approached the resistance zone with weekly RSI hovering around 70 which has not been sustainable since past 7 years. A good short trade can be opened here for a decent risk to reward ratio.
The 240 min chart of the pair shows positive divergence in RSI(14) momentum indicator. The divergence was also seen when prices traded around 109 level after which a strong rally was witnessed till 114.40 levels. The present chart structure and divergence appear similar.
Dollar index on the daily chart is moving in a falling channel pattern since its top in January 2017. The EURUSD pair along with GBPUSD are nearing the resistance zone on the weekly scale indicating a top formation. Development of 1st positive divergence on the daily chart supports stance for a bottom.
XAGUSD on 4 hour chart has given a breakout from an inverted head & shoulder pattern with neckline at 17.26 level. Any dip near to the neckline is a good opportunity to go long for a target of 18.80 - 19. The stop loss for the trade can be placed at 16.50 level.
GBPUSD after peaking near 1.2675 retraced back to 1.2400 level. At present on the 4hr chart we are witnessing a AB=CD pattern completion which also lead to retest of previous breakout point. The pair is likely forming an inverted head and shoulder pattern with neckline placed at 1.2660. At current level the risk to reward ratio looks favorable for long position.
USDJPY on 4hr chart is exhibiting first degree of positive divergence indicating short term bottom in place. The major resistance for the pair is around 114.80 level above which it can test 116 - 118 levels.
EURUSD pair has been moving in a wedge like formation on the 240 min chart. We are now witnessing exhaustion sign at the top end of the wedge along with first degree of negative divergence on the RSI indicator. The initial target can be placed at 1.0625 which is the lower trend line of wedge.
AUDUSD on 4 hour chart is forming an evening star candlestick pattern. Looking at overall structure on daily chart it looks like a top for the short term is placed at 0.75876 level, giving an excellent risk to reward ratio on the short side. Looking for 0.7450 in the short term