The Euro recovers its ground

The Euro versus the Dollar has recovered from the drop that it suffered at the beginning of today’s session, after it was known that the fine that Deutsche Bank will receive is much lower than expected. The shares of the German bank rallied immediately after the rumor along with the single currency. On the one hour chart of the EUR/USD we can see that the pair dropped to a low around the 1.1150 level, but then it went back up above the 1.1200 level to reach Thursday’s high, around the 1.1249 level. The price has formed what it appears to be an ascending triangle or pennant, which could give us a bullish breakout. In case the pair continues higher, its next resistance could be the 1.1300 level. To the downside, the 1.1200 level could act as support again if the price drops to that level.

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Brazilian Real consolidates

On the daily chart of the US Dollar versus the Brazilian Real, we can see that the price has been consolidating around the 55 day exponential moving average, which is currently around the 3.2629. The price is currently at the 55 day EMA from where it may try to bounce to the downside. If the price goes back down, its next support could be the 200 week exponential moving average around the 2.9380 level. To the upside, above the 55 day EMA we can see the 200 day exponential moving average around the 3.4214 level, which could act as its next resistance.

Corn tries to complete a double top

On the daily chart of corn we saw the formation of a double top pattern on the 55 day exponential moving average, which is running precisely at the 340.00 round number level. The confirmation line or signal line is the level at the 325.00. A breakdown of the 325 level could take the price of corn to the low at the 312.17 level. To the upside, above the 55 day EMA, its most relevant resistance could be the 200 day exponential moving average, blue line, around the 359.98 level. Another possible scenario is that the 325 could act again as support and the price of corn could stay consolidated within the current channel.

Gold in a bearish channel

Gold continues trading inside a bearish channel that we identified a few days ago on the daily chart. There is no clear direction in the middle term until the price of gold breaks out of the channel, either to the upside or to the downside. Today the price dropped to the 55 day exponential moving average, purple line, around the 1324.15 level and stalls there. The price may try to bounce to the upside from the current level, but it has been really oscillating around that moving average; therefore, it could also break it to the downside. To the downside, the next support is still the 1300 level. Below the 1300 level, the next support is the 200 day exponential moving average, blue line, around the 1269 level. Above the upper trendline of the channel, the high at the 1375.14 level could be its most relevant resistance.

Corn bounces from 55 day EMA

The 55 day exponential moving average or EMA could be used as a trend indicator, but it also acts as a support or resistance level, just like the 200 day EMA does. On the daily chart of corn we can see that the price has bounced twice to the downside from the 55 day EMA, purple line. If the price continues dropping, then the 325.00 could act as support followed by the 312.17 level, which could also act as support. Above the 55 day EMA, the 200 day EMA, blue line, around the 360.54 could act as resistance. Once the price goes above the 55 day EMA, it could consolidate and start bouncing in between the 55 EMA and the 200 EMA.

Bullish bounce on the Dollar

On the daily chart of the US Dollar Index, we can see that the price has been consolidating in a range, forming what it appears to be a symmetrical triangle. The upper boundary of the consolidation is around the 96.00 to 96.50 zone. To the downside, we can see that the lows of the candles have been higher than the previous ones, but a breakdown of the 95.00 level could take the index to the 94.00 level or the 93.00 level. Since yesterday the Dollar Index has been falling on the comments by the FED regarding interest rates, but once the index go to the 95.00 level, it stalls there and tries to bounce to the upside. For now the 96.00 level could act as its next resistance.

Good strength on the Yen

The Yen has strengthen today during the whole trading session, but especially during the FED’s announcement. The FED has not given a clear signal to the markets and that has created a lot of uncertainty among traders and investors. That uncertainty has created risk aversion and since the Yen is used as a safe haven instrument, it rises. On the daily chart of the USD/JPY we can see that today’s breakout was bearish and the price came very close to the 100.00 support level. The Bank of Japan has been taking a lot of care around the 100.00 zone, intervening at times to prevent the Yen from going higher. To the upside, the 102.00 level or the 103.00 level could act as resistance.

GBP/USD tries to break the 1.3000 level

The GBP/USD has been oscillating around the 1.3000 level, mostly inclined to the downside, but without a clear direction due to the fact that tomorrow we have the FED’s announcement. Whatever the decision may be for tomorrow in regards to the US interest rates, the Dollar crosses may exhibit high volatility. To the upside, the resistances at the 1.3100, 1.3200, 1.3300 and even the 1.3481 may be broken if the reaction after the FED is positive for the Pound. To the downside, the 1.2800 level may act as a temporary support for the pair in case of a bearish breakdown, but the momentum may take the pair even lower.

Bullish triangle on coffee

The bullish triangle is a bullish continuation pattern when it breaks to the upside, but there could also be a breakout to the downside. On the weekly chart of coffee we can see that the price has formed an ascending triangle with a good resistance around the 154.58 level. The thing that makes a bullish breakout most probable on an ascending triangle is the fact that the lows of the candles are higher than the previous ones and the bullish pressure accumulates on the horizontal resistance line. A breakout to the upside could take the price of coffee to the 169.76 level or the 184.12 level. To the downside, the first support could be at the 200 day exponential moving average, around the 145.47 level. The 55 day EMA could also act as support around the 135.98 level.

GBP/USD: Stalls at the 1.3000 level

The Pound versus the Dollar has been falling steadily during the past few trading sessions. On Friday, the pair dropped rapidly towards the 1.3000 level where it stalls as shown on the daily chart. The 1.3000 level could act as resistance and the pair may try to bounce towards the 1.3100 level. A second visit to the 1.3000 level could cause the support to break and the pair may accelerate its bearish momentum towards the 1.2850 level or the 1.2800 level. Above the 1.3100 level we can also see that the 1.3200 could act as resistance along with the 55 day exponential moving average, purple line, around the 1.3254 level. The angle of inclination that the 55 day EMA has is showing us that the bearish trend has gained more strength; therefore, there is a higher chance of seeing the pair drop some more.

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Indecision on gold

On the daily chart of gold we can see that the precious metal is still within the limits of the bullish flag that we identified a few days ago. There is no clear trend in the medium term for gold until the price breaks out of the channel, either to the upside or to the downside. Right now the price is oscillating around the 55 day exponential moving average, purple line, around the 1324 level. From this point the price of gold could go in any direction. If it breaks below the 1300 level, then the zone between the 200 day and 200 week EMA, blue area, could act as its next support. To the upside, the high around the 1375 level is still its most important resistance at the moment.

AUD/USD: Breaks 200 day EMA

The 200 day exponential moving average or EMA usually acts as a very good support or resistance zone. The price will try to bounce from that EMA when it first touches it. But if the price breaks the EMA, then the momentum may accelerate in the direction of the breakout. On the daily chart of the AUD/USD we can see that the price has broken below the 200 day EMA, blue line, around the 0.7478 level. If the bearish momentum continues, then its next support could be the 0.7300 level. To the upside, the 0.7500 level may act as resistance, but the 0.7600 level may act as an even more important resistance.

Possible double bottom on the EUR/JPY

The EUR/JPY on the daily chart is showing us a possible double bottom formation around the 114.00 zone. From this area the pair may try to bounce to the upside, but the 115.00 level or the 116.00 level could act as resistance. The 55 day exponential moving average is at the 115.00 level, but the pair has not respected that zone in the past; therefore, this time the price may as well break above it. The real break out should be above the 116.00 level or below the 114.00 level. Below the 114.00 level, the 113, the 111, or the 109.37 levels may act as supports.

Cotton is struggling with the 69.00 level

The October contract of cotton has found a good resistance around the 69.00 zone as we can see on the daily chart. The lower shadows of the most recent candles are indicating us that the bullish pressure is accumulating at the 69.00 level. A bullish breakout of the 69.00 level could cause the bullish momentum to accelerate and the commodity may try to reach the high at the 77.80 level, but we must also keep in mind that the highs of the candles on the way to the 77.80 level could act as resistance also. The MACD indicator is showing us that probably a bullish trend has started, but it has not gained enough strength. To the downside, the 200 day exponential moving average, around the 65.30 level may act as support.

GBP/JPY: Support at the 135.00 level

The Pound versus the Yen has been respecting certain technical levels as seen on the daily chart. The purple line over the chart represents the 55 day exponential moving average, which at the moment is around the 136.72 level. The price started climbing and broke above the 55 day EMA to reach the 139.00 level to stall there and bounce back down. The pair retraces to the downside and breaks below the 55 day EMA again to reach the 135.00 level. At the moment, the pair is trying to bounce to the upside and if it breaks above the 55 day EMA, then it may reach the 139.00 level. To the downside, below the 135.00 level, its next supports could be the 132.00 level or the 128.67 level.

Good pullback on soy

The November contract for soy on the daily chart continues pulling back to the upside after it bounced from the 936.20 level and it may try to reach the 200 day exponential moving average, which is just below the 1000.00 level. The whole area between the 55 day EMA, purple line and the 200 day EMA, blue line could act as a good resistance for the commodity. The high at the 1035 level could also act as resistance. To the downside, the low at the 936.20 level may also act as support.

AUD/USD: visits the 0.7700 zone

The AUD/USD has not been respecting the 0.7700 level as shown on the daily chart, but this time it has stopped at that level and it may try to bounce to the downside. A breakout of that level could take the pair to the high at the 0.7760 level, which could act as resistance. To the downside, in case the pair bounces back down, then the 0.7600 level may act as support, but much lower around the 0.7500 with the 200 day EMA, that zone may become a better support for the AUD/USD.

EUR/JPY: Stalls at the 114.00 level

The Euro versus the Yen has been falling steadily this week as the Yen gains more ground versus its major counterparts. After the pair broke below the 55 day exponential moving average it dropped to the 114.00 zone where it stalls at the moment. If the price bounces from the 114.00 level to the upside and goes back above the 55 day EMA, then it may reach the 116.00 level, which could act as resistance. But if the pair keeps falling, then the 113.00 level or the lows at the 112.29 zone may also act as support.

USD/JPY: Stuck around the 104.00 level

The USD/JPY has not been able to break above the 104.00 level and during the last few days it has been stuck between the 103.00 level and the 104.00 level. The bullish trend is still in place and the USD/JPY may try to break above the 104.00 level and above that level, the pair has an open road all the way to the 107.00 level. The 103.00 level along with the 55 day EMA may act as support, but below that level, the 102.00 may also act as support. On the daily chart we can see that the most important support so far has been the 100.00 zone.

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