Will the weakness continue on the Dow Jones?

The Dow Jones has been pressured to the downside, primarily by the actions of Donald Trump. First, the US president imposed additional tariffs on steel and aluminum imports that included China and other Chinese products. That caused the stock market to drop. Secondly, Trump started to criticize the way Amazon uses the US Postal Service to deliver its products and that also caused the stock market to fall, not only in the US, but in Europe and Asia as well. On the daily chart of the Dow Jones we can see that the index has found a good support around the 200 day EMA (blue line) as it did at the beginning of February. Now the index has tested the 200 day EMA approximately five times and that is a sign that the instrument may continue dropping. To the downside, the next support level could be the 23000 and to the upside, the 25000 may act as support, given a bullish breakout of the 24000 level.

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Support on Gold?

The bearish momentum accelerates on gold as shown on the daily chart and the price falls exactly to the 55 day EMA (purple line), around the 1324 level. The US Dollar rallied strongly during today’s session and that has pressured the price of gold to the downside, due to the negative correlation between the Greenback and the precious metal. At the current level, the price of gold may either bounce to the upside from the 55 day EMA or break that moving average to the downside to continue falling to the 1300 zone. In case of a bearish breakdown, the 1300 area along with the 200 day EMA (blue line) could act as support. Below the 200 day EMA, gold has the road clear to fall all the way down to the 1238 zone. In case of a bullish bounce from the 55 day EMA, gold may find some resistance around the 1350 level. Above the 1350 level, its next resistance is still the peak at the 1366 level.

Gold loses its bullish momentum

Risk appetite has come back into the markets causing the price of gold to retrace to the downside, due to its status as a safe haven asset. Gold has a very good bullish momentum since the fears of a trade war between the United States and China hit the markets. Now that certain US officials are meeting with their counterparts in Beijing, the markets are back in risk appetite mode. The main stock indexes around the world are rallying, but gold is pulling back. The rally on gold took the price of the precious metal above the 1350 level, but today the price comes back down to the 1345 level. In case gold continues falling, its next support level could be the 55 day EMA around the 1323 level. To the upside, its most relevant resistance is at the peak reached at the 1366 level.

Copper price action very technical

On the daily chart of copper we can see very interesting technical levels that have served as good resistances or supports. First of all, the price of copper has been in a downtrend during the past few months and today it has reached a low around the 294.25 level. The current daily candle has the shape of a doji, which is an indecision Japanese candlestick pattern. The price of copper did not stalled its drop at the 294.25 level by chance, exactly at that level we can find the 55 week EMA. Below the 55 week EMA at the 294.25 level, we can find the 200 week EMA at the 279.77 level. Any of those weekly moving averages may act as an important support for copper. To the upside, the 200 day EMA (blue line) at the 302.47 level may act as resistance. That same level of the 302.47 already acted as support in the past and it may change its function to resistance. Above the 200 day EMA, its next resistance level could be the 55 day EMA (purple line) at the 313.01 level.

Trend reversal on the USD/CAD?

The USD/CAD has broken below the bullish trendline that we can see on the daily chart and it could be signaling a trend reversal. However, the pair may find a good support zone around the 1.2793 level and the 1.2730 level. First of all, the 55 week EMA is crossing around the 1.2793 level, below that area we have the 55 day EMA and the 200 day EMA at the 1.2730 level. We can see now all the factors than coincide around the same zone and that could act as a good support level. The stochastics indicator has space to continue falling, therefore the price of the USD/CAD could also drop some more. On the other hand, if the pair breaks below the 1.2730 level it would have the road clear to drop to the low at the 1.2244 level. In case of a bullish bounce from the current zone, the most relevant resistance level is the peak at the 1.3121 level.

The Pound loses its bullish momentum

Apparently, the GBP/USD has lost its bullish momentum once it broke above the 1.4200 level as shown on the daily chart. However, if the pair continues rising, then the 1.4300 level could act as resistance, due to the fact that the pair has already peaked at that zone. Today’s daily candle has closed like a shooting star and that is a bearish reversal pattern. Therefore, the GBP/USD may try to pull back to the downside and probably reach the 1.4000 level. Below the 1.4000 level, its next support zone could be the 1.3900 area along with the 55 day EMA. Much lower, at the 1.3700 level we can also find a very good support zone, followed by the 1.3600 level, which has acted as resistance in the past and could change its function to support.

Amazing rally on oil

WTI oil rallied during today’s session, supported by the drop on the US Dollar and the lower than expected US oil inventories. The political tensions in the Middle East have also caused the price of oil to rally. On the daily chart of WTI oil we can see that the price was in a consolidation or symmetrical triangle before taking off and breaking above the 64.00 level. The price has also broken above the 65.00 level to reach a high around the 65.50 level. If WTI oil keeps rallying, then the high at the 66.59 level may act as resistance. On the other hand, in case of a bearish pullback, the 64.00 level may act as support, level that was acting as resistance in the past. Below the 64.00 level, its next support could be the 61.00 area where we can also find the 55 day EMA (purple line).

Important support on copper

The price of copper has been very volatile lately and disorderly as shown on the daily chart of the commodity. Even though there is no clear trend on copper in the midterm, we can see that the price has fallen back to the 302.58 level where we can find the 200 day EMA (blue line). The 302.58 level has already acted as a support in the past and it is possible to see another bullish bounce from that zone. To the upside, the 55 day EMA (purple line) at the 314.90 level could act as resistance, but above that level the next resistances could be the 325.00 level followed by the high at the 330.66 where we can find the 200 month EMA. On the other hand, the highs of the daily candles are being lower than the previous ones, indicating that the bearish pressure is accumulating at the 302.58 level, therefore we could see a breakdown of that level and the price of copper could fall to the low at the 294.25 level.

Strong rally on the Pound

The possibility of the Bank of England modifying its monetary policy has boosted the Pound to the upside, along with the Brexit negotiation advances. On the daily chart of the GBP/USD we can see that the pair has broken above the 1.4000 level and came very close to the 1.4100 level to pull back a little bit to the 1.4041 level where we can find its 200 week EMA. The GBP/USD had a sustainable bearish trend or correction, but at the beginning of March the pair started to rally again and it is possible that it has come back to its bullish trend. However, in order for the bullish trend to be sustainable, the price must break above the 1.4300 level where we can find the 55 month EMA. On the other hand, we must keep in mind that the round number levels at 1.4100 or 1.4200 could act as resistances. Below the 1.3900 level, the price of the GBP/USD would be breaking the current bullish trendline and it is possible to see a breakdown of the 55 day EMA to go back to its bearish trend. The 1.3700 level would be its most relevant support in the mid-term.

Incredible comeback on oil

WTI oil rally today after the better than expected NFP numbers out of the US. Even though the wages did not rise as expected, the jobs number was enough to send the main US stock indices rallying more than 1%. The rally also extended to oil and that is why we are seeing a green bullish engulfing candle on the daily chart of WTI. The rally took the price above the 61.00 level and above the 55 day EMA. In case of continuing rising, the price of WTI oil could reach the 64.00 level or the 65.00 level, area that could act as resistance. On the other hand, if the price drops back down for whatever reason, the 58.00 level could act once again as support, due to the fact that exactly at that level we have the 200 week EMA. Below the 58.00 level, the next support level could be the 200 day EMA, around the 56.00 level.

Descending wedge on the AUD/USD

The descending wedge is a bullish reversal pattern that forms in a consolidation area. On the daily chart of the AUD/USD we can see that the pair has been retracing from the peak at the 0.8123 until it consolidates around the 200 day EMA (blue line). For now, that EMA is acting as support. On the other hand, the 55 day EMA (purple line) has been acting lately as resistance. If the price breaks above the 55 day EMA, then it would be breaking above the wedge and the pair could break the 0.7900 level to go and visit the 0.8000. But in order for the AUD/USD to go back to its bullish trend, it must break above the peak at the 0.8123 level. To the downside, a breakdown below the 0.7700 could accelerate the bearish momentum and the AUD/USD could reach the 0.7600 level or even the 0.7500 level.

Possible bullish breakout on the USD/CAD

The USD/CAD has found a good resistance around the 1.3000 level as shown on the daily chart. The bullish trend is still in place according to the angle of inclination of the 55 day EMA (purple line). In fact, if the 55 day EMA manages to cross above the 200 day EMA (blue line), then we will have a golden cross, pattern that has bullish implications in the mid-term. The stochastic indicator is at the overbought zone, but it has formed what it appears to be an ascending triangle, which is telling us that the pressure is building up to the upside. Therefore, we could see a bullish breakout of the 1.3000 level. Above the 1.3000 level, its next resistance could be the 1.3200 level. To the downside, in case of a bearish pullback, its next support could be the 200 day EMA at the 1.2693 level, zone that was resistance in the past and now could become support.

The bullish momentum accelerates on gold

During last Thursday’s trading session the daily candle on gold closed as a hammer formation, which is a bullish reversal pattern. On the daily chart of gold we can see that the lower shadow of Thursday’s candle is relatively long, showing us that the buyers came into the market around the 1300 level and pushed the price higher. On the following sessions, the price of gold breaks above its 55 day EMA (purple line), around the 1320 level and today the bullish momentum accelerates. In case of continuing higher, gold may find some resistance around the 1350 level. Above that level, the peak at the 1366 level could also act as resistance. To the downside, the most relevant support area is between the 1300 level and the 200 day EMA (blue line) at the 1292 level.

Follow up on the EUR/USD

The EUR/USD on the daily chart is really in a wide range between the 1.2200 zone and the 1.2500 zone. This Monday’s daily candle has closed in the shape of a hammer, which is a bullish reversal pattern; therefore, the EUR/USD may try to head higher. To the upside, the pair may find some resistance on the 1.2400 level, but a better resistance could be the 1.2500 level along with the 1.2554 high. As we said, the pair is oscillating around the 1.2300 level where we can find the 200 month EMA without a clear trend. For now, the 55 day EMA (purple line) could act as a support along with the 1.2200 level. Below the 1.2200 zone, the next support levels could be any of the round number levels all the way down to the 1.1900 zone where we can find the 200 day EMA (blue line).

Analysis on silver

The price of silver has a very tight correlation with the price of gold. Both precious metals are affected by the Dollar, due to the fact that both are quoted in Dollars in the international markets. The same volatility that we have seen on the Dollar index is reflected on the price of silver. On the daily chart of silver we can see that the instrument fell to the 16.14 level, but it couldn’t reach the 16.00 level. On the chart we can also see a well-defined bearish trendline that has not been broken up to now and it is showing us that the bearish trend in the short term is still in place, despite the current pullback. However, if the price manages to break that trendline to the upside, then its 200 day EMA (blue line) may act as resistance, followed by the 17.00 level. Above the 17.00 level, its next resistance could be the peak at the 17.67 level. Below the 16.00 level, its next support could be the low at the 15.59 level.

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