Hammer on the GBP/USD

On the daily chart of the GBP/USD we can see that the pair has been a very good bearish trend since it bounced back down from the 1.4300 level, where we can find the 55 month EMA. When the GBP/USD got to the 1.3900 level, it consolidated for a while and then it accelerated its bearish momentum to get to the 1.3700 level. The 1.3700 level has already acted as a support on the GBP/USD, but even if the price breaks below that level, it may find some support at the 200 day EMA. Below the 200 day EMA, its next support could be the 1.3500 level. The current candle is the shape of a hammer, which is a bullish reversal pattern. If the next daily candle is bullish, then the GBP/USD may change its direction to the upside. However, the 1.3900 level may act as resistance on the GBP/USD.

The Pound sinks

The Pound versus the Dollar accelerates its bearish momentum below the 1.3900 level and it is trying to reach the 1.3700 level. The pair may find some support around the 1.3700 level due to the fact that the zone has already acted as a support in the past. Besides being a round number level, just below the 1.3700 level we can see the 200 day EMA (blue line), which in turn may also contribute for all that area to become a good support. On the other hand, if the pair breaks below the 200 day EMA, the price may drop to the 1.3500 level. To the upside, in case of a pullback, the GBP/USD may find a resistance at the 1.3900 level. Usually after a big drop or rally, the price tries to pull back, because some profit taking takes place. Therefore, the pair may pull back to the 1.3900 level or the 1.4041 zone where we can find the 55 day EMA (purple line) and the 200 week EMA.

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The drop continues on the EURUSD

The EURUSD accelerates its bearish trend and falls to the 1.2100 level where it may find some support. None the less, the pair may continue falling to the 200 day EMA around the 1.2045 level, but a better support for the EURUSD may be the 1.2000 level. Below the 1.200 level, any of the round number levels all the way to the lows at the 1.1600 level may act as support. Let’s see if the EURUSD manages to break below its 200 day EMA or if it bounces to the upside from that moving average. In case of a bullish bounce, the EURUSD may find a good resistance around the 1.2300 level where we can find the 55 day EMA and the 200 month EMA, making that zone a very important resistance for the pair. Around the 200 day EMA we may also see that formation of a breakout-pullback pattern.

Interesting pullback on gold

Gold has been falling lately due to the rally on the US Dollar, but during this Tuesday’s session the price of gold has pulled back to the 55 day EMA (purple line), around the 1330 level. Even though the price of gold is trying to go back down, the bearish trend is still in place and the price may try to go back down with its main trend. In case of going back down, the price of gold may try to visit the 200 day EMA (blue line), which is currently just above the 1300 level. To the upside, in case gold continues heading higher, its next resistance could be the 1350 level, but a better resistance is located at the 1365 level from where the price has already bounced to the downside in a couple of times. The price of gold may try to go back down, but the fundamentals also play a big role and risk aversion or risk appetite may also influence the future direction of the precious metal.

It looks more and more like a descending triangle

On the daily chart of the EURUSD we can see that the pair has been consolidating around the 1.2300 level, where we can also find the 200 month EMA, without taking a clear direction. During the consolidation, the price action has formed what it appears to be a descending triangle with a support at the 1.2200 zone and a resistance at the upper trendline of the triangle. It seems like the bearish pressure is building up at the 1.2200 level and a breakdown of that zone could take the EURUSD to the 200 day EMA (blue line), around the 1.2040 level. On the other hand, a breakout above the triangle could take the pair to the peak at the 1.2554 zone, but in order for the pair to go back to its longer term bullish trend, its price must break above the 1.2600 level.

Amazing drop on the GBP/USD

The Pound versus the Dollar has accelerated its bearish momentum and breaks below the 55 day EMA around the 1.4041 level, where we can also find its 200 week EMA. The pair has completed four consecutive sessions falling as shown on the daily chart and it could continue dropping to the 1.3900 level. Below the 1.3900 level, its next support could be the low around the 1.3700 level. Another possibility on the GBP/USD is that the pair could leave behind a false breakout around the 1.4041 level and it could try to go back up. Due to the strong drop, the sellers may try to take some profits off the table and the pair may try to pull back. To the upside, the 1.4300 level, where we can find the 55 month EMA, could act as resistance. Actually, the 55 month EMA is what has been holding the GBP/USD down, which could end the month down, breaking the 13 year pattern where the pair had rally on every April.

Copper stays inside the channel

On the daily chart of copper we can see that the commodity has been inside a very well-defined bullish channel. For now, the 55 day EMA (purple line) has been acting as a support, around the 310.12 level. The 314.00 could act as resistance and the next resistance could be the 325.00, but in order for the price of the GBP/USD to get there, it would have to probably break above the channel. To the downside, the 310.12 level could still act as support, below that level, the next support could be the 200 day EMA (blue line), at the 302.96 level. The most obvious and important support is at the 55 week EMA, around the 295.75 level. The bullish momentum is still in place.

WTI oil rises almost 3%

Saudi Arabia is planning on keeping its current oil production cuts until they see the price of oil reaching around 80 to 100 Dollars per barrel. That news along with the US crude oil inventories coming out lower than expected have caused the price of WTI oil to rally almost 3% during today’s session and reaches its highest level since the end of 2014, around the 68,76 level. The bullish momentum has taken the price of WTI to break above the 67.67 level and it could continue to the 70.00 zone. In case of a bearish pullback, the 67.67 level or the 65.00 level could act as support. Below the 65.00 level, its next support zones are the 61.00 level and the 58.00 zone where we can find the 200 day EMA and the 200 week EMA.

The USD/CAD at the edge of a cliff

After the head and shoulders pattern was completed on the USD/CAD daily chart, the price of the pair has continued falling, below the 1.2600 level. During the last four trading sessions, the USD/CAD has consolidated just below the 1.2600 level with a good resistance at that zone, but today the price is trying to break below the 1.2545 level. In case of a breakdown below the 1.2545 level, the USD/CAD may fall to the 1.2448 level where the pair already bounced to the upside during the pullback registered in mid-February. However, a better and most important support zone is at the low around the 1.2244 level. On the other hand, if the USD/CAD manages to break above the 1.2600 level, it could try to go and visit the 200 day EMA around the 1.2735 level, where we can also find the 55 day EMA (purple line). If the 55 day EMA crosses below the 200 day EMA, then we could have a “death cross” pattern, which has bearish implications in the mid-term. Therefore, any pullback or bullish correction may be short-lived.

Silver is pressuring the ceiling

On the daily chart of silver we can see that the price of the metal has been boxed in a very well defined range with the 200 day EMA (blue line) acting as resistance, currently around the 16.76 level and the lower part of the range is at the trendline just above the 16.00 level. Even though the price of silver is in a range, the lows of the last few candles have been higher than the previous ones with the highs at the 200 EMA. This is an indication that the bullish momentum is pressuring to the upside and we could see a break out of the 200 day EMA. To the upside, the 17.00 could act as resistance, but above that level, the peak at the 17.67 level could be its most important resistance. Below the 16.00 level, its most relevant support is the low at the 15.59 level.

Good consolidation on the AUD/USD

On the daily chart of the AUD/USD we can see a very good consolidation around the 200 EMA and 55 day EMA. The 0.7800 level has been acting as a resistance and a breakout of that level could accelerate the bullish momentum to the 0.7900. Above the 0.7900 level, its next resistance could be the 0.8000 level, followed by the peak at the 0.8123 level where we can find the 200 month EMA. From the current level, the AUD/USD may head in any direction, but to the downside the 0.7700 level may act as a congestion zone again. The 0.7600 level may act as a better support, followed by the 0.7500 level.

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Bullish exhaustion on gold

Gold had a good bullish run during this week as the risk appetite came back into the markets and the Dollar retraced to the downside. However, during today´s session the price of gold loses its bullish momentum and retraces to the downside once it came very close to the high and resistance area around the 1366. The direction reversal on the price of gold comes after the FED’s minutes where release and its was known that the central bank is trying to slow down the US economy, which causes the stock market to fall, the Dollar to rise, and gold to pull back. The price of gold managed to break above the 1350 level, but once it got to the 1366 zone it comes back down, leaving today’s daily candle with a relatively long upper shadow, which is an indication that the sellers are trying to take control of the market. The 1350 level may act as support, but a breakdown of that level could take the price of gold to the 55 day EMA around the 1326 level in the next few sessions.

Bullish breakout on the WTI oil

WTI oil has been supported during today’s session by a rise in risk aversion and optimism in the stock market. Usually, when stocks rise, oil tends to rise as well, due to the fact that the market is anticipating an economic expansion that will need fuel to stay up and running. The change in sentiment of the markets comes after the Chinese president announced that it will open its markets and it will reduce the tariffs on car imports. That has caused the price of oil to rally as shown on the daily chart of the WTI oil. On the chart we can see that when the bullish momentum accelerated, the price of WTI oil breaks above the bearish trendline and above the 64.00 level. The bullish momentum was so strong that the price continued to break above the 65.00 level and reach a high around the 65.84 level. The next resistance on the commodity could be the 66.64 zone from where the price has already bounced to the downside. In case of a bearish pullback, the first support zone could be the 64.00 level, followed by the 55 day EMA, which is currently around the 62.49 level.

Pay attention to the bullish momentum on the Pound

The GBP/USD has broken above the 1.4100 level as shown on the daily chart and the bullish momentum has taken the pair to a high around the 1.4164 level. The long upper shadow on the last candle indicates a bearish interest towards the end of the trading session. However, the pair may continue rallying and it could reach the 1.4200 level, which could act as resistance. A better resistances though is at the 1.4300 level where we can find the 55 month EMA. Since we don’t know for sure where the price may bounce to the downside, we could use a money management strategy where we enter with half of the usual lot at one level and then if the price keeps heading higher, we enter with the other half and average the position. To the downside, the 1.4000 zone is still a congestion area.

Slight bearish trend on the EUR/USD

The EUR/USD is keeping a slight bearish inclination as shown on the daily chart and it has managed to break below the 1.2300 level and the 55 day EMA (purple line). Exactly at the 1.2300 level we can find the 200 month EMA, therefore the price of the EUR/USD has also broken that moving average to the downside. The breakdown took the price of the EUR/USD close to the 1.2200 zone from where it bounces to the upside and finds resistance around the 1.2300 level. Support has become resistance for now at the 1.2300 zone. To the upside, the most important resistances could be the 1.2400 level and the 1.2500 level. To the downside, the most relevant support right now is the 1.2200 level, followed by the 1.2100 level and finally the 1.2000 level where we can also find the 200 day EMA (blue line).

How low may the Pound drop?

On the 4 hour chart of the GBP/USD we can see that the price has broken below the 200 week EMA at the 1.4041 level and below the 200 period EMA on the 4 hour chart at the 1.4000 level. The pair has dropped very close to the 55 day EMA at the 1.3957 level. This whole area is clearly a very good support zone due to the confluence of moving averages on different time frames like the weekly, daily, and 4 hour charts. Even if the price of the GBP/USD keeps dropping, the 1.3900 level may act as support. To the upside, the most relevant resistance level is at the 1.4100 zone, followed by the 1.4200 level.

Indecision and volatility on copper

On the daily chart of copper we can see that the price has been oscillating around its 200 day EMA (blue line), without taking a clear direction, but very volatile at times. This Wednesday’s daily candle has a long lower shadow, which is an indication that the buyers came into the market towards the end of the session. Therefore, during this Thursday’s session the price of the metal may go back up, but the 55 day EMA (purple line) at the 310.99 level may act as resistance. In order for the copper to go back to its bullish trend, the price must break above the 310.99 level and even above the 325.00 level. At the 330.66 level we can find the 200 month EMA, making that zone the most relevant resistance for copper. To the downside, the 55 week EMA at the 294.25 level is its closest support level and below that moving average, the 200 week EMA at the 279.77 level may also act as support.

The Dollar index consolidates

On the daily chart of the Dollar index we can see that the instrument has consolidate during the last four trading sessions just below the 90.00 level and the 55 day EMA. The bearish trend seems to stay in place, but the index has actually no clear trend at the moment. The 89.35 level continues acting as a very good support zone, due to the fact that at that level we can find the 200 month EMA, but the real support is at the low of the 88.14 level. To the upside, in case of a bullish breakout the momentum may accelerate to the upside and the index may rally to the 91.00 level or even the 92.00 level, but the 200 day EMA (blue line), may also act as a resistance.

The GBP/USD tries to go back up

The GBP/USD has been slowly getting higher from the 1.4000 zone, but it has not been able to break above the 1.4100 level. Regardless of the bearish correction during last week, the GBP/USD keeps a bullish trend in the short term and its 55 day EMA has been holding the price to the upside. But on the other hand, the 1.4041 level and the 1.4300 level have been acting as good resistances due to the fact that we can find the 200 week EMA at the 1.4041 level and the 55 month EMA at the 1.4300 level. A breakout above the 1.4100 level could take the GBP/USD to the 1.4200 or the 1.4300 level. To the downside, the 55 day EMA may act as support, but also the 1.3900 and the 1.3700 levels could act as support. In reality, the most relevant support is at the 1.3600 level where we can also find the 200 day EMA.