GBP/USD visits again the 55 day EMA

The Pound versus the Dollar has been very volatile during this Tuesday’s session. At the start of the session, the pair rallies and breaks above the 1.4700 level, but then it drops rapidly towards the 55 day EMA, purple line, around the 1.4454 level. The 55 day EMA may act as a support and the pair may try to go back up since it has had a slight bullish trend. But the 200 day EMA, blue line, around the 1.4623 level may act as a resistance in case the price visits that zone. To the downside, if the pair breaks below the 55 day EMA, then the 1.4400 level may act as a support.

Soy nears a resistance

Soy has kept a very good bullish trend that has lasted a few months, as shown on the weekly chart of the commodity, but it is getting closer to the 200 period exponential moving average on the weekly chart, around the 1112 level. Due to the strong rally that soy has had, it is clearly over-bought and prone to a correction from the 200 week EMA. At least at the moment the weekly candles have stopped making higher highs, which is an indication that the bullish trend is losing its strength. If the price bounces to the downside, then the 1000.00 could act as a support.

Golden Cross continues on Oil

A few days ago we identified a Golden Cross on the daily chart of WTI Oil, which we said it was when the 55 day EMA crosses above the 200 day EMA. This moving average cross has bullish implications and even though the price of oil has not been able to break above the 50.00 level, the moving averages keep separating from each other showing us that the bullish trend may continue. The angle of inclination of the 55 day EMA is also important and as long as that angle is 45 degrees or more, the trend may remain strong. Above the 50.00 level we don’t have any more important resistances until the 60.00 level. To the downside, in case of a pullback, the 46.00 could act as a support.

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Golden Cross on WTI Oil

The Golden Cross occurs when the 55 day exponential moving average crosses above the 200 day exponential moving average, which has bullish implications for the instrument in the medium term, even though in the short term a bearish correction may appear. On the daily chart of WTI Oil we can see a golden cross around the 42.81. The price may continue higher and visit the 50.00 which could act as a temporary resistance from where a bearish pullback may develop. If the price retraces to the downside, it may go and visit the 46.00 level, which could act as support. Above the 50.00 level there are no more resistances until the 60.00 level.

Gold accelerates its drop

After the consolidation that gold made on the daily chart above the 55 day exponential moving average, the precious metal accelerates its bearish momentum and continues dropping while the US Dollar keeps rallying. The bearish trend may continue towards the 1200 zone, which could act as support along with the 200 day exponential moving average, blue line, around the 1193 level. The current area where the price of gold is, has been a congestion zone from where the price may go in any direction. Therefore, the price may also try to correct to the upside, but in that case, the 55 day EMA may act as its first resistance. Above the 55 day EMA, purple line, its next relevant resistance is the 1300.00 level.

Copper loses some of its momentum

Even though copper keeps its bearish trend as shown on the daily chart, once it got to the 206.00 level, the commodity loses some of its bearish momentum as indicated by the actual consolidation that it is forming and the fact that the bars on the MACD’s histogram are getting smaller. If the zone acts as a support and the price bounces to the upside, then the correction may take the price to the 215.00, which could act as resistance. But above the 215.00 level, we also have the 200 day EMA, which could also act as resistance. For now the price may go in any direction; therefore, if it breaks below the 206.00 level, then the drop may accelerate to the 200.00 level or the 195.00 level.

Gold had a small drop

After gold started retracing to the downside from the 1300 level, the price has entered a consolidation or congestion zone between the 1200 level and the 1300 level as shown on the daily chart of the precious metal. Price has reached the 55 day exponential moving average, around the 1244 zone and stalls there. That moving average may act as a support and a bullish bounce from there may take the price to the 1300 again, but if it breaks it, price may drop towards the 1200 area or to the 200 day exponential moving average around the 1190 level.

Silver stalls at the 55 EMA

Silver falls to the 55 day exponential moving average, around the 16.35 during a bearish pullback. It is possible for that moving average to act as support and if it bounces to the upside from there, then the price may visit the 17.00 level; however, above the 17.00 level, the 18.00 level could act as a better resistance for silver. Below the 55 day EMA, its next support could be the 16.00 level. The 200 day exponential moving average may also act as a support and much lower, the 15.00 level has been acting as a congestion zone.

The EUR/USD nears the 1.1200 level

The FED minutes for today have supported the Dollar and right now the probabilities of seeing a rate hike in June have risen to 39% after being at 15% this last Tuesday. The Dollar rallies versus its main counterparts, especially versus the Euro and the Yen. That is why the EUR/USD drops from the 1.1300 zone to the 1.1200 zone. If the price touches the 1.1200 level, that level may act as support. To the upside, the 1.1300 level may act as resistance. The 21 day EMA, yellow line, has been holding the price down and breaks below the 200 day EMA, blue line. The 55 day EMA, purple line, has not been able to break below the 200 day EMA, but if it does, that could be an indication that the pair may continue lower.

Symmetrical triangle on the USD/CAD

The USD/CAD continues oscillating around the 1.2900 level without taking a clear direction and it has formed what it appears to be a symmetrical triangle. The current formation may act as a resting point for the price to continue going higher, but first it would have to break above the 55 day EMA and above the 1.3000 level. If such a breakout happens, then the price may try to reach the 200 day EMA, around the 1.3200 level. To the downside, the pair would have to break below the 1.2800 level to consider a bearish breakdown. Below the 1.2800 level, any of the round number levels to the 1.2500 level may act as support.

WTI Oil nears the 50.00 level

WTI oil has been rallying lately after the comments from Goldman Sachs about a disruption in oil supply. Those comments have had a positive impact on the price of oil and the commodity breaks above the 46.00 level to continue higher. If the rally continues, oil may reach the 50.00 level, which could act as resistance and maybe bounce to the downside from there. A bearish pullback may take the price back down to the 46.00 level. Below the 46.00 level, the 200 day EMA may also act as support. If the 55 day EMA, purple line, crosses above the 200 day EMA, blue line, then that may be an indication that the bullish trend could continue in the middle term.

The USD/CAD in consolidation mode

The USD/CAD gets tangled between the 21 day EMA and the 55 day EMA, also between the 1.2800 and the 1.3000. From this point the pair may go in any direction. The CAD may need another push from oil in order to continue its rally. For now the US Dollar is gaining ground versus the Canadian Dollar, hence the pullback that we are seeing on the daily chart to the upside. A breakout above the 1.3000 level may take the price to the 200 day EMA, blue line, around the 1.3200 level, which could act as resistance. To the downside, a breakdown below the 1.2800 level may indicate a possible return of the bearish trend, but the pair would have to make a lower low below the 1.2500 level in order for the trend to keep going.

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Possible bullish flag on the EUR/JPY

The flag patterns along with the triangles and pennants, appear on areas of consolidation and most of these patterns act as continuation patterns, meaning that the price continues in the direction where it was coming from, but there are some that act as reversal patterns. On the 4 hour chart of the EUR/JPY we can see that the price bounced from the 122.00 zone to the upside and broke above the 55 period exponential moving average. The pair continues going higher to the 200 period EMA, blue line, around the 124.07 level. Around the 200 EMA, the price forms what it appears to be a bullish flag. Since the price coming into the formation has a bullish trend, then there are more probabilities of seeing a bullish breakout and maybe a visit to the 125.00 level. But if the price breaks to the downside, then the 55 period EMA, purple line, may act as its first support. Below the 55 EMA, the 122.00 zone may also act as support.

Pullback continues on the USD/JPY

The Yen has been hurt lately by the comments from Japanese officials regarding the implementation of additional economic stimulus and the intervention of the Yen. That is why the USD/JPY continues retracing to the upside, after it made a low around the 106.00 zone. Today the pair breaks above the 200 week exponential moving average, which is around the 108.20 level. Even though the bearish trend is still in place for the longer term, the stochastics indicator on the daily chart has not entered the overbought zone yet, indicating that the pair has room to continue rallying. To the upside, the 111.00 level may act as resistance, above that level, the 114.00 level may also act as resistance. To the downside, the 106.00 level may act as support in case the price falls back to that zone.

GBP/USD: Visit to the 55 day EMA

The exponential moving averages may act as support and resistance zones, especially the 200 period EMA. But the 55 period EMA may also act as support or resistance. On the daily chart of the GBP/USD we can see that the pair has retraced 50% of the latest rally and reaches the 1.4400 level, which coincides with the 55 day EMA, purple line. At the moment, the pair may try to bounce to the upside from this point. Above the 1.4400 level, the 200 day EMA may act as resistance. Below the 1.4400 level, the 61.8% Fibonacci Retracement, along with the 1.4300 level may act as support.

GBP/USD: Possible visit to the 1.4400 level

The GBP/USD continues retracing to the downside, after breaking below the 200 day EMA, around the 1.4658 level. This same zone may act as resistance if the price goes back up. Above the 200 day EMA, the 1.4800 level may also act as resistance. But the price is trying to go and visit the 1.4400 level, which could act as support and the current retracement may end there. However, the MACD indicator on the daily chart is showing us a change in trend; therefore, the price may break the 1.4400 level and continue towards the 1.4200, which could act as support.

Gold tries to go back to a congestion zone

On the daily chart of gold we can see that the precious metal continues pulling back to the downside after it made a high around the 1300.00 level. On this same chart we can see that the price formed what it appears to be a “symmetrical triangle”, which is broken to the upside before reaching the 1300 zone. If the price continues falling and goes back inside the “symmetrical triangle”, then it would be entering the congestion area or consolidation zone, while rendering the pattern invalid. The price has been very undecided around this zone, due to the fact that it is oscillating around the 200 week exponential moving average, which is currently around the 1257 zone.

Good bullish pullback on the USD/CAD

The USD/CAD has been rallying for the past two days and it has finally broken above the 21 day exponential moving average, yellow line. The price has been below the 21 day EMA since the beginning of the year; therefore, the current breakout above that EMA is significant, because it may be signaling a change in trend in the medium term. The next resistance on the pair may be the 55 day EMA, purple line, around the 1.3000 level. To the downside, the 1.2700 level along with the 21 day EMA may act as support.

Bearish correction on silver

On the daily chart of silver we can see that the price reached the 18.00 level and from that zone it bounces to the downside. The bullish trend is still in place on silver, indicated by the angle of inclination of the 55 day EMA and the separation between the 55 EMA, purple line, and the 200 day EMA, blue line. For now if the price keeps retracing to the downside, then the 17.00 level may act as support. Below the 17.00 level, the 16.00 along with the 55 day EMA may also act as support. To the upside, the latest high around the 18.00 level may act as resistance again if the price goes back up.

The Mexican Peso loses ground versus the Dollar

The USD/MXN rallies rapidly for today as seen on the daily chart and we can also see that the pair was not able to confirm the breakdown below the 200 day exponential moving average, just around the 17.25 level. The pair was making lower highs with the 55 day exponential moving average, purple line, acting as a good resistance. Today the price goes back to the 55 day EMA and it may try to break it to the upside. If it breaks to the upside, then the 18.00 level could act as resistance. For now there is the possibility of the 55 day EMA to act as resistance and the price may try to go back to the 200 day EMA.