Oil rallies above an important resistance

On the daily chart of the WTI oil we can see that the commodity has been pulling back from the 72.91 zone to the 63.33 level. Oil consolidates around the 65.00 level since the end of May, but today oil rallies rapidly and breaks above the 55 day EMA (purple line) and breaks above the 68.00 level. In case of continuing higher, the price of oil may reach a resistance area around the 70.00 level. Above the 70.00 level, the zone around the 72.00 level and the 72.91 level may act as resistance. In case the price of WTI oil breaks below the 68.00 level, it would be entering again its congestion area around the 65.00 level where it may consolidate again. To the bottom, the 63.33 level could act as a support, but the 62.00 level could act as a better support with the 200 day EMA (blue line) crossing very close around that level.

ActivTrades tools: SmartPattern

One of the great tools that ActivTrades has for its clients is the SmartPattern indicator, available for MetaTrader 4 and 5. If you are a Live client at ActivTrades, then you can download and install the SmartPattern indicator. The indicator gives you certain target levels on the instrument to the upside, to the downside and sideways in case of consolidation. It also gives you the breadth of the market by measuring positive and negative changes in the patterns. Additionally, you can also get the approximate price range in the next 20 bars. Don’t miss out on this great opportunity to get additional support for your trades. Try the tool in combination with your traditional analysis. For more information on how to download the add-on, please visit the following link:

https://www.activtrades.com/en/SmartPattern

Gold tries to break an important support

On the weekly chart of gold we can see that the commodity has falling from the double top pattern at the 1365 level and tries to break below the 200 week EMA, blue line, at the 1273 level. In case of continuing dropping, the price of gold may reach the low at the 1236 level, which could act as support. Below the 1236 level, its next support level could be the 1200 zone. The red bullish trendline has acted as a good support, therefore the price of gold may pull back to the upside. In case of a bullish pullback, the 55 week EMA, just below the 1300 level could act as resistance. Above the 1300 level, the next resistance levels could be the 1326 level, but the double top at the 1365 level could act as a better resistance.

The bearish momentum accelerates on the GBP/JPY

The Pound continues losing ground versus its main counterparts, especially versus the Yen while the risk aversion rises, due to the trade conflicts between the United States and China. On the daily chart of the GBP/JPY we can see that the pair has been falling from the 154.00 zone with some pullbacks on the way down. Once it got to the 143.00 zone, the GBP/JPY started retracing to the upside and visits the 148.00 level where we can also find the 55 day EMA and where it forms a double top pattern. During today’s candle, the double top pattern is confirmed and the price of the GBP/JPY breaks below the 145.00 level. If the pair continues falling, then the 143.00 level may act as support. To the upside, the 148.00 level is still its most important resistance. For now the bearish trend is still in place, confirmed by the death cross of the 55 and 200 day EMAs and by the angle of inclination of the 55 day EMA.

Dead cat bounce on Bitcoin

Since the beginning of April, the price of Bitcoin rallied very close to the 10000 Dollar zone, but it couldn’t reach exactly that level to start retracing to the downside. The price breaks below the 9000 level and below the 200 day EMA (blue line) to bounce to the upside from the 8000 level. The price of Bitcoin tried to bounce back up, but the 200 day EMA acted as a resistance and the cryptocurrency drops again below the 8000 level. The bearish momentum accelerates below the 8000 level and reaches the 7000 level from where it bounces to the upside. After the bounce, Bitcoin drops rapidly and makes a gap to break below the 7000 level, forming what it is to known as a dead cat bounce. Bitcoin drops very close to the 5977 level and then consolidates around the 6495 level from where it started rising in April and forms a triangle or pennant. From the current consolidation the price may head in any direction. Above the 7000 level, the 8000 zone may act as resistance. To the downside, the 5977 may act again as support.

Double bottom on the Pound?

On the daily chart of the GBP/USD we can see that the pair has fallen again to the 1.3200 level and it may formed a double bottom pattern, which is a bullish reversal formation. The neckline or confirmation line of the double bottom pattern is just below the 1.3500 level, therefore the price must break above the 1.3500 level to continue rallying. None the less, the 1.3600 level along with the 200 day EMA may act as resistance, followed by the 1.3700 level. On the other hand, the death cross is still in place, which is when the 55 day EMA crossed below the 200 day EMA and that is an indication that the bearish trend is still in place. The pair may continue with its bearish trend and if it breaks below the 1.3200 level, then its next support level may be the 1.3100 level or the 1.3060.

The Euro plummets

Today’s comments by the European Central Bank has caused the Euro to plummet due to the fact that the central bank kept its interest rates unchanged. We must keep in mind that interest rates is what primarily moves a currency. Therefore, if the ECB does not hike, the Euro has no reason to rally. On the daily chart of the EUR/USD we can see that the pair drops more than 200 pips from the 1.1833 level to below the 1.1600 level. In case of continuing falling, the 1.1500 level may act as support, but a breakdown of that level could accelerate its bearish momentum. On the other hand, due to the fast drop, we could see a profit taking pullback to the 1.1700 level or the 1.1833 level. For now, the angle of inclination and the separation of the 55 day EMA with the 200 day EMA is indicating a bearish trend.

Death cross continues on the GBP/USD

The Pound versus the Dollar had a good bearish trend that may continue further according to the death cross pattern on the daily chart. The death cross is formed when the 55 day EMA crosses below the 200 day EMA and it has bearish implications in the mid-term. What it means is that in the short term the price may pull back to the upside, but in the longer term the price may continue lower with its bearish trend. When the moving averages cross, this is not taken as an entry signal, due to the fact that the price has been falling from further up and it may be ready for a correction. That is what happened on the GBP/USD daily chart. The price of the pair drops to the 1.3200 level from where it bounces to the upside, when the death cross is formed, the price tries to go back down, but the 1.3300 level is acting as a support at the moment. Below the 1.3300 level, the 1.3200 may also act as support. To the upside, the 1.3500 zone or the 1.3600 could act as resistance.

The NZD/USD continues consolidated

The Kiwi or NZD/USD has been pulling back to the upside as shown on the daily chart and reaches its 55 day EMA around the 0.7041 level, which is acting as resistance. From the 55 day EMA the price of the NZD/USD bounce to the downside to the 0.7000 level and is currently boxed between those two levels. From the current consolidation, the NZD/USD may head in any direction, but if it breaks to the upside, the 200 day EMA at the 0.7125 level may act as resistance. Above the 200 day EMA, its next resistance is at the 0.7300 level. To the downside, below the 0.7000 level, its next support zone is between the 0.6900 level and the 0.6850 level. Another possible scenario is that the pair may continue consolidating in the current range.

Will copper continue rallying?

On the daily chart of copper we can see that the commodity had a very good rally last week and the price came to visit the 200 month EMA at the 329.46 level once more. The 200 month EMA has been acting as a good support for copper and that is why there is no surprise in the current pullback. However, the price of copper has found a good support around the 325.00 level. In case of another visit to the 200 month EMA, copper may break above that level and continue rallying. On the other hand, if the price breaks below the 321.74 level, then it would have the road clear to fall to the 314.00 level. Below the 314.00 level, the 55 day EMA may act as support, but the most important support zone is at the 304.00 level and the 301.00 level.

Resistance on the Kiwi

The NZD/USD had been falling from the 0.7400 zone to the 0.6900 area from where it retraces to the upside, as shown on the daily chart. The correction takes the price of the NZD/USD to the 55 day EMA (purple line) at the 0.7045 level where it finds a resistance. The pair consolidates below the 55 day EMA and the 0.7000 level. It seems like the bullish pressure is accumulating at the 55 day EMA and a breakout of that level could take the NZD/USD to the 200 day EMA (blue line) at the 0.7125 level. Above the 200 day EMA the pair has no more resistances until the 0.7300 level. In case of a bearish breakdown, below the 0.7000 level the pair could drop to the 0.6900 level or even the 0.6800 level.

Webinars: Let's Talk Candlesticks

One of the most commonly used chart in technical analysis is the candlestick chart. The candlesticks provide us with more complete information about the market´s behavior. For instance, a long shadow with a small real body may indicate high volatility of the underlying asset with indecision. To better understand and make use of the candlesticks pattern successfully, we invite you to the next Webinar by ActivTrades on June 12^th. The event will be conducted by professional trading expert, Martin Walker. You may attend the event online for free from 7pm to 8pm, London time. For more information and to register for the Webinar, please visit the following link:

https://www.activtrades.com/en/webinars

Gold continues consolidating

The price of gold is still consolidating as shown on the daily chart between the 1281 as support and the 1304 as resistance. At the 1304 level we can find the 200 day EMA, which has been acting as a good resistance. Even though the price has been consolidating, gold has been dropping from the 1365 level and the bearish trend may continue according to the 55 day EMA which is pointing to the downside. In case the 55 day EMA crosses below the 200 day EMA, we could have a death cross pattern which has bearish implications in the mid-term. To the downside, the 1281 level may act as support, but the 1273 level could act as a better support due to the fact that at that zone we can find the 200 week EMA. Above the 1304, in case of a bullish breakout, the next resistance could be the 1326 level.

Interesting pullback on the GBP/JPY

On the daily chart of the GBP/JPY we can see that the pair found a good support zone around the 147.00 level since March to the middle of May when the price broke below that level and falls to the 145.00 zone to drop to the 143.00 area. From the 143.00 zone, the price of the GBP/JPY starts pulling back up and reaches the 147.00 level, which could act as resistance. Since the 147.00 zone acted as support in the past, now it may act as resistance. In case of a bearish bounce from the 147.00 level, the GBP/JPY may find some support at the 145.00 level or the 143.00 level. Above the 147.00 level, its next resistance zone could be around the 148.80 level where we can find the 200 day exponential moving average.

The GBP/USD is boxed

The GBP/USD is boxed between the 1.3300 level and the 1.3400 level as shown on the daily chart. The bearish trend on the GBP/USD has been kept from the high at the 1.4300 zone, but since it got to the 1.3200 level, the pair has been correcting to the upside. From the current congestion area the GBP/USD may head in any direction, but the death cross at the 1.3600 level is indicating a possible continuation of the bearish trend. The death cross is formed when the 55 day EMA (purple line) crosses below the 200 day EMA (blue line). The pattern is showing us that the pair may continue lower in the mid-term. In case of a bearish bounce, the 1.3200 level may act as support. To the upside, the 1.3500 level and the 1.3600 level may act as resistance.

The EUR/JPY in a possible bearish bounce

The EUR/JPY falls to the 125.00 zone from where it bounces to the upside and reaches a resistance zone around the 127.87 level where we can find the 200 week EMA. Above the 200 Week EMA, its next resistance could be the 130.19 zone where we can find the 55 Week EMA. However, the 55 day EMA keeps retreating from the 200 day EMA as shown on the daily chart and that is a sign that the bearish trend is still strong, regardless of the current bullish pullback. On the weekly chart the pair has formed a hammer pattern, which is a bullish Japanese candlestick pattern. Therefore, the price may continue higher. A most important resistance for the EUR/JPY on the daily chart is the highs around the 133.00 zone. To the downside, in case of a continuation of its bearish trend, the low at the 125.00 level may act as support.