Copper unable to break resistance

The May contract for copper on the daily chart has found a good resistance at the 214.91 level. If the price breaks that level to the upside, then the bullish momentum may accelerate. The MACD indicator is showing a bullish trend, but it is losing strength, probably because of the resistance where the price is at the moment. To the downside, the 200.00 level could act as support in case of a bearish retracement.

Consolidation on orange juice

The orange juice contract for May continues finding a good support around the 125.00 level. The price could come out in any direction, even though the MACD indicator is signaling a slight bearish trend. Below the 125.00, the 113.24 could act as support. To the upside, the 200 day EMA, around the 132.49 could act as resistance, but above that level, the 140.00 could also act as resistance since in the past it acted as support.

The NZD/USD finally breaks to the upside

The New Zealand Dollar versus the US Dollar was in a consolidation between the 55 day EMA around the 0.6619 level and the 200 day EMA around the 0.6718.  The price finally breaks above the 200 EMA, but if it continues rallying, then the 0.6800 level could act as resistance. To the downside, the 200 EMA may act as support. Below the 200 EMA, the 55 EMA may act as support or the low at the 0.6544 level.

Double bottom on the USD/JPY?

The Dollar versus the Yen has fallen and visits again the 111.00 zone where it stalls and bounces to the upside, towards the 112.00 level. On the daily chart of the USD/JPY we can see that the price has formed a possible double bottom pattern. The confirmation line of the double bottom pattern could be the 115.00 level, which means that if the price breaks above the 115.00 level, then the pattern would be completed and the pair could change direction to the upside. However, the 115.00 level may also act as resistance.

Possible descending triangle on the USD/CAD

As oil consolidates, the USD/CAD has also been going sideways and it has found some support around the 1.3700 level. On the daily chart we can see that the pair has been making lower highs and it stays below the 21 day exponential moving average. As the found support at the 1.3700 area, it formed what it appears to be a descending triangle. If the pair breaks to the downside, it may break below the 1.3600 and find some support around the 200 day exponential moving average at the 1.3414 level. To the upside, a breakout of the 21 day EMA may indicate a bullish change of trend.

Bullish Dow

The Dow Jones Industrial Average rallied today as we can see on the daily chart. The Dow breaks above the 16424 and it seems like it is completing a double bottom pattern. If the index continues rallying during this week, it may try to visit the 200 day exponential moving average, around the 16988 level. That 200 day EMA may act as a resistance. If the Dow breaks below the 16424, then the latest low at the 15365 may act as support.

The EUR/USD continues in a support zone

The 200 day exponential moving average continues acting as a good support zone for the EUR/USD, around the 1.1064 level. The more times the price visits that zone, the higher the probabilities of seeing a breakdown. If the price breaks to the downside, then the 1.1000 could act as support or the 1.0900 level. To the upside, if the price bounces up, then the 1.1200 could act as resistance. Fundamentally the Euro stays weak due to the disappointing data from the Eurozone, but the Dollar has not gained enough strength and that is why the pair is having a difficult time trying to break below that moving average.

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Bearish breakdown on the USD/CAD

The USD/CAD had been oscillating around the 1.3800 and the 1.3900, forming what it appeared to be a symmetrical triangle. Today the price breaks below the triangle and below the 1.3700 level. If it continues dropping, the 1.3600 could act as support. If the price breaks to the upside, above the 1.3900 level, then the 1.4000 could act as resistance.  The 21 day exponential moving average, yellow line, has been holding down the price pretty well. It seems like the bearish trend is still in place.

Bearish breakdown on the GBP/USD

The Pound versus the Dollar has broken and important trendline to the downside today, which we had noticed and identified a few days ago. Actually, the line that the price has broken to the downside is the lower trendline of a symmetrical triangle on the daily chart of the GBP/USD. On the chart we can also see that the price has found a good resistance on the 55 day exponential moving, purple line. At the moment, the price has found a good support at the 1.4300 level, but if it breaks that level to the downside, the 1.4200 or the 1.4100 could act as support.

Possible buy entry on the EURJPY 5 minute

On the 5 minute chart of the Euro versus the Yen we can see that the pair has broken above the 128.00 level and it has returned to that zone. It is possible for the 128.00 to become support and the price may bounce again to the upside. Therefore, we should be attentive to a possible bullish bounce. Its next resistance could be the 129.00 level.

Continuation of the pullback on gold

Gold bounces to the downside from the 200 week exponential moving average towards the 1200 level. The 1200 level could act as support, but if it breaks it to the downside, the 55 week exponential moving average, purple line, could act as a better support. Any of those two levels could serve as long entry points. If the price returns to the 200 week EMA, then that level could act as resistance once again. It is possible for the price to go back up, since the bullish trend is still in place.

Gold reaches its 200 week EMA

Today gold accelerates its bullish momentum above the 1200 level as shown on the daily chart and reaches the 200 week exponential moving average, around the 1257 level. On that zone price tries to stall and bounce to the downside. On the daily chart to the left of the image we can see in better detail the bounce from the 200 Week EMA and how the 1232 area could become support. But we must be attentive to a possible visit of the 1200 level, because that level has a higher probability of becoming support.

Oil continues dropping

Light crude oil or WTI breaks below the 28.00 level and its bearish momentum accelerates. There are no strong fundamental reasons for oil to rally at the moment, and that is why when oil tries to rally, it comes back down. The bearish trend is still in place for crude and if it continues dropping, then the 27.00 level could act as its next support. To the upside, the most important resistance level could be the 31.00 zone, where we can also see the 21 day exponential moving average, yellow line.

Gold and the twelve hundred Dollars per ounce

Gold has been rising lately due to the fact that the stock markets are on a downtrend and have been weakening among a rise in risk aversion. Gold is used as a safe haven instrument or investment and that is why when things get spooky, money flows into gold. On the daily chart of the precious metal we can see that the price has reached the 1200 Dollars per ounce, but the zone has acted as a resistance and price stalls around there. Price may try to bounce to the downside, but it may also break that level to the upside.

Breakout and pullback pattern on the EUR/JPY

The Euro versus the Yen has completed a breakout and pullback pattern on the weekly chart around the 200 week exponential moving average along with the 131.00 round number level. It is possible for price to continue falling, but the 126.08 area may act as support. To the upside, the 134.00 or the 135.00 could act as resistance in case the price breaks that moving average to the upside.

China’s economy still in doubt

The People’s Bank of China has been selling Dollars as a way to mitigate the damage caused by the falling Yuan and that has taken China’s foreign reserves to their lowest level since 2012. According to some reports by the PBOC, its reserves have shrunk by about 99 billion Dollars. The drop in China’s reserves have been more than what most analysts and economists were expecting. This has brought up some questions as to how long will it take for the Chinese economy to get back in track. That is why for this upcoming week there could be more risk aversion in the markets and we could probably see safe-haven instruments like the Yen rally along with gold and government bonds.

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The EUR/GBP breaks triangle pattern

The Euro strengthen for today versus its major counterparts and versus the Pound we can see that the price breaks above the ascending triangle. On the daily chart of the EUR/GBP we had identified a few days back the formation of an ascending triangle with a good support at the 0.7523 level with an upper trendline. The 0.7523 has been acting as a good support from where the price bounces to the upside and breaks the upper trendline. At the moment the price seems to be heading higher and if it reaches the 0.7756, then that level could act as resistance.

Huge drop on the USD/JPY

The Yen strengthen for today as risk aversion comes back into the markets. On the daily chart of the USD/JPY we can see how the pair dropped rapidly from the 120.00 level to the 117.00 level, which is a 300 pip drop. A 300 pip daily range for the USD/JPY is very unusual. When the price reached the 117.00 level, it bounced to the upside and right now is kind of finding some resistance at the 118.00. For now the 117.00 may act as a support, but if it breaks that level to the downside, then the next round number level of the 116.00 could act as support.

Good resistance on copper

The March contract for copper has found a good resistance area on the 206.00 level. Even though in some occasions the price has tried to break above the 206.00, by the end of the day the price closes below the 206.00 level as shown on the daily chart. If the price retraces to the downside, then the 200.00 could act as support. On the other hand, if the price breaks above the 206.00 level, then the 215.00 could act as resistance.

The USD/CAD goes back to the 1.4100 level

The US Dollar versus the Canadian Dollar goes back up to the 1.4100 level. That level may act as resistance and price may try to bounce to the downside from there. A little bit above the 1.4100 level, we can see the 21 day exponential moving average, which could also contribute in turning the area into resistance. However, if the price breaks to the upside, then the 1.42 or the 1.43 could act as resistance. To the downside, the 1.3900 zone could act as support.