Symmetrical triangle on the EUR/USD

The EUR/USD on the daily chart has been consolidating and inside such consolidation, a symmetrical triangle has formed. The symmetrical triangle could act as a continuation patter, but the price may breakout in any direction, really. The range inside the triangle starts to shrink and that causes the pressure to accumulate until the price breaks out in any given direction. To the upside, the price of the EUR/USD may find some resistance at the 200 day EMA, around the 1.1868 level. Above the 200 day EMA, its next resistance could be the 1.2000 level. To the downside, the 1.1500 level may act as support, but in case of a breakdown, the EUR/USD may find another support at the 1.1400 level.

Consolidation on gold

Gold has entered into a consolidation phase as shown on the daily chart of the precious metal. The price of gold consolidates between the 1211 level as support and the 1236 level as resistance. Inside the consolidation, gold has formed what it appears to be a bearish flag or pennant. It is called a bearish flag, because the trend coming into the consolidation is bearish. Therefore, there is a higher probability of seeing a breakdown to the 1200 level, which could act as support. But the price may also break to the upside and form a pullback or correction. Above the 1236 level, the 55 day EMA may act as a resistance, but a better resistance could be the 1273 level, due to the fact that at that level we can find its 200 week exponential moving average.

Death cross on copper

The death cross pattern is a moving average cross over pattern that has a very peculiar name due to the fact that the pattern has negative implications for the underlying asset in mid or longer term. The pattern has better chances of success on the daily chart. The pattern is confirmed when the 55 day moving average (purple line) crosses below the 200 day moving average (blue line). The cross is indicating us that the trend has reversed to the downside and the price may continue falling. At the same time we must keep in mind that when the cross happens, the price of the asset is already over-extended to the downside and probably ready for a correction. In fact, there is a 50% chance of seeing a pullback after a death cross is confirmed. The price of copper pulls back form the 270.00 zone to the 283.62 area where we can find the 200 week EMA. The price may continue falling, but the 270.00 level may act as a temporary support. However, if the price breaks below the 270.00 level, the bearish momentum may accelerate even more.

Breakout-pullback pattern on Bitcoin

The price of Bitcoin has been supported lately by the growing acceptance of the cryptocurrency by the large financial institutions. On the daily chart of Bitcoin we can see that the price started to rise from the 5769 level and breaks above the 6898 level along with the 55 day EMA (purple line). The bullish momentum takes the price of Bitcoin to the 200 day EMA, which is currently just below the 8000 level. The 200 day EMA tried to act as a resistance, but the price continued higher to break above the 8000 level and reaching a high around the 8472 level to pull back to the 8000 level. If the price of Bitcoin bounces to the upside from the 8000 level, then a breakout and pullback pattern may develop and Bitcoin may try to reach the 9000 level. To the downside, below the 200 day EMA, its next support level could be the 55 day EMA and the 6898 level.

General Motors plummets

The tariffs on steel and aluminum by the US has started to affect the outlook for the futures earnings of General Motors and possibly other US car manufacturers. Even though GM has reported earnings above expectations for the second quarter, its revenue has fallen and that causes the price of its stock to plummet during today´s session. The price of GM has been falling from the high that it made at the 44.94 level during last month and reaches the 55 and 200 day EMAs zona where it consolidates. After consolidating above the 38.68 level for around 15 trading sessions, the stock makes a bearish gap and drops to the 36.51 level. Another factor that has been eating into GM’s revenue and sales is the fact that the US Dollar has risen considerably versus the Argentine Peso and the Brazilian Real, causing GM’s cars to be more expensive in those countries, causing demand to drop. In case of continuing lower, the price of GM may find some support around the low at the 35.25 level. To the upside, the 38.68 level may change to resistance in case the price pulls back to that zone.

EMAs confluence on the EUR/JPY

The exponential moving averages or EMAs may act as very good support or resistance zones, especially in areas where they coincide on different time frames. For example, on the daily chart of the EUR/JPY we can see that the 55 day EMA (purple line) is at the 129.84 level and exactly in that same area is where the 55 week EMA is located. That is why it is of no surprise to see the price of the EUR/JPY stall at that zone and it may even try to bounce to the upside. The current drop on the pair is really a correction from a bullish trend in the midterm. If the price bounces to the upside from the 55 day EMA, then the 200 day EMA (blue line) may act as a temporary resistance. On the other hand, if the EUR/JPY breaks below the 55 day EMA, its next support could be the 127.98 level where we can find its 200 week EMA. On the daily chart we can also see that the most relevant support is at the 125.00 round number level.

Possible hammer on the USD/JPY

The USD/JPY has fallen recently on comments by Donald Trump where the president of the United States is not happy with a strong Dollar. That was the main reason why the USD/JPY has fallen close to the 55 day EMA around the 110.67 level. Towards the end of the session, the price goes back up and closes around the opening level, leaving behind what is known as a hammer formation. The hammer pattern is a bullish reversal formation and if the next candle is bullish, then the price of the USD/JPY may change direction to the upside. The 113.00 level may act as resistance in case the price reaches that zone one more time. To the downside, the 55 day EMA may act once again as support in case the price drops to that zone and below that level, the 110.00 area along with the 200 day EMA (blue line) may also act as support on the USD/JPY.

Resistance on the EUR/USD

The EUR/USD has found a good resistance on its 55 day EMA as shown on the daily chart, but the more frequent the price visits that moving average, the higher the probabilities of seeing a bullish breakout. In case of a breakout, the EUR/USD may continue rising towards the 200 day EMA (blue line), around the 1.1900 level. Above the 1.1900 level, its next resistance could be the 1.2000 level. To the downside, in case of a bearish bounce, the 1.1600 level may act as support followed by the 1.1500 zone which could also act as support. Another possible scenario is that the price of the EUR/USD may consolidate between the 1.1700 level and the 1.1600 level without taking a clear direction.

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The GBP/USD finds support

On the daily chart of the GBP/USD we can see that the pair has dropped to the 1.3000 zone where it finds some temporary support. The Pound has been weakening amid the uncertainty surrounding the Brexit process, which could end up being dramatic for the British economy. Besides the Brexit effects, the GBP/USD has also been pressured by strength on the US Dollar, which has been supported by the possibility of another two rate hikes before the end of the year. In case of a bullish bounce from the 1.3000 level, the GBP/USD may retrace to the 1.3300 level where we can find the 55 day EMA. If the pair continues lower and breaks below the 1.3000 level, then its next support could be the 1.2900 level.

Will the GBP/USD stay at support?

The GBP/USD has found a very good support level at the 1.3100 zone from where it has bounced seven times already to the upside, as shown on the daily chart. The pair may find once again a support at the 1.3100 visit, but the more times the price visits the level, the higher the probability of it breaking it. In case of a bearish breakdown, the 1.3000 level may act as a temporary support, but a breakdown of that level would accelerate the bearish momentum and cause the price to fall more rapidly. Another possible scenario is that the price may stay consolidated between the 1.3100 level and the 1.3400 level without taking a clear direction. Above the 55 day EMA, in case of a bullish correction, the 200 day EMA at the 1.3500 level may act as a very good resistance.

Oil completes another leg down

The price of WTI oil has been falling from the 75.00 area from where it bounced to the downside to break below the 72.07 level and fall to the 55 day EMA (purple line) as shown on the daily chart. After the first leg down, the price of WTI oil consolidates for a couple of sessions around the 70.00 level and the 55 day EMA. At the beginning of this week, the price of oil accelerates its bearish momentum and breaks below the 68.00 level to reach a low around the 66.65 level. If the price of WTI oil keeps dropping, then the 65.00 zone could act as a support, followed by the 200 day EMA (blue line), which could also act as support along with the 62.00 level. To the upside, in case of a bullish pullback, the price may find some resistance around the 70.00 level. For now the price of crude may head in any direction, really, depending on the developments in the Middle East around Iranian sanctions.

Possible hammer on the GBP/USD

The GBP/USD has fallen during today’s session to the 1.3100 level as shown on the daily chart. The drop on the GBP/USD comes from the bearish bounce at the 55 day EMA (purple line). If the pair continues dropping below the 1.3100 level, then its next support could be the 1.3000 level. After the bullish bounce from the 1.3100 level, the pair forms a hammer pattern. The hammer is a bullish reversal pattern, but it is confirmed when the next candle is bullish. Therefore, we could see a bullish pullback on the GBP/USD. If the pair retraces to the upside, the 1.3400 level could act as resistance, but a better resistance is at the 1.3500 level where we can also find the 200 day EMA (blue line). Another possible scenario on the GBP/USD is that the price may consolidate between the 1.3100 level and the 1.3300 level.

WTI oil retraces to support zone

On the daily chart of WTI oil we can see that the commodity consolidated around the 75.00 level and the 73.00 zone. From that consolidation the price breaks below the 73.00 level to drop to the 70.00 level where it tried to stall for a minute. But the drop was really strong and the price continued dropping to the 55 day exponential moving average (purple line) around the 69.18 level. From the 55 day EMA the price bounce to the upside and the actual daily candle is in the shape of a hammer. The hammer is a bullish Japanese candlestick reversal pattern, therefore the price may bounce back to the upside. In case of a bullish pullback, the price may find some resistance at the 73.00 level and the 75.00 level may also act as resistance. To the downside, below the 68.00 level, its next support could be the 65.00 zone.

Resistance on the EUR/USD

On the daily chart of the EUR/USD we can see that the pair has found a good resistance zone at the 55 day exponential moving average (purple line), around the 1.1763 level. The price of the EUR/USD drops again below the 1.1700 level, but the pair is actually consolidating around that zone and it has shrink its range. If the pair continues dropping, the 1.1600 level may act as support followed by the 1.1500 zone. Regardless of the current consolidation, the bearish trend is still in place on the EUR/USD and we may see a continuation lower. On the other hand, if the prices manages to break above the 55 day EMA, then the 200 day exponential moving average (blue line) at the 1.1900 zone may also act as resistance. Above the 200 day EMA, any of the round number levels may act as resistance all the way to the 1.2400 level.

Again resistance on the USD/JPY?

Earnings season has begun and along with it risk appetite has come back to the markets amid optimism on positive corporate results. The safe haven assets have lost ground due to investors looking for higher returns. That is why the USD/JPY has been rallying for the past two sessions and reaches the 111.39 level from where it has bounced to the downside in the past. If the pair bounces to the downside from the 111.39 level, then it would be forming a double top pattern on that zone. On the other hand, the valleys on the daily chart have been higher than the previous ones, indicating that the bullish pressure is accumulating at the 111.39 level. A breakout above the 111.39 level could take the USD/JPY to the 113.00 level. To the downside, the 110.00 level could act as support along with the 55 and 200 day EMAs just below that level.

High volatility on the GBP/JPY

On the daily chart of the GBP/JPY we can see that this Monday’s session was very volatile, but indecisive. The long shadows in both directions on today’s daily candle is telling us that the pair tried to break above the 55 day EMA (purple line), but at the same time it tried to bounce from that moving average to the downside. At the end of the session, the real body of the candle closed around the opening and that is an indecision signal around the 146.91. To the upside, the 200 day EMA (blue line) at the 148.16 level could act as resistance. Above that moving average, its next resistance could be the 151.00 level. To the downside, the low at the 143.20 level could act as support.

Important resistance on the EUR/JPY

On the weekly chart of the EUR/JPY we can see that the instrument had a very good bullish trend from the 115.00 zone to the 137.51 zone, before retracing to the downside. On the daily chart of the EUR/JPY the trend seems to be bearish, but in reality it is not a bearish trend, but rather a correction of the main bullish trend on the weekly chart. Therefore, we could see the pair head back up in the longer term. However, at the moment the EUR/JPY has found a very good resistance at the 55 week EMA (purple line), around the 129.84 level. Since the bullish bounce from the 125.00 level to the upside, the pair has consolidated between the 200 week EMA at the 127.87 level and the 55 week EMA. Around the current level we can see a bearish trend line (red line), which could act as resistance, but a breakout of that resistance could take the pair to the 133.00 zone. To the downside, in case of a breakdown below the 200 week EMA, its next support could be the low at the 125.00 level.

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Possible hammer formation on the NZD/USD

The hammer is a bullish reversal Japanese candlestick pattern. On the weekly chart of the NZD/USD we can see that the price fell to the 0.6700 level and bounces to the upside, leaving behind a hammer formation. On the daily chart of the Kiwi at the left hand side of the image we can see that the price has been falling from the 55 day EMA to the 0.6700 level and forms what it appears to be a double bottom formation. Both, the hammer and the double bottom patterns are bullish reversal patterns. Therefore, we have a high probability of seeing the NZD/USD retracing to the upside. Above the 0.6800 level, its next resistance could be the 0.6900 level, but the 0.7000 level could also act as resistance. On the other hand, if the price continues dropping, then the pair may reach the 0.6600 level.

Oil tries to break resistance

The bullish pressure on WTI oil is accumulating around the 74.45, where the price finds a good resistance. However, the bullish trend in the short term is still in place, therefore the price may continue rising. On the daily chart of WTI Oil we can see that 10 out of the last 12 daily candles have been bullish and that is an indication that the bullish trend is strong. The instrument is clearly overextended to the upside, but if it continues rallying, then the 77.00 level could act as resistance, due to the fact that in that zone we can find the 200 month EMA. On the other hand, if the price bounces to the downside, then the 70.00 level or the 68.00 level could act as support. Another possible scenario is that the price of WTI oil may consolidate between the 73.00 level and the 75.00 level until new fundamental data comes in to the markets and makes it take a more clear direction.

Possible bullish continuation on WTI oil

WTI oil has had a very good bullish trend, even though OPEC has been thinking about raising its production output. It seems like the shortage may continue to support oil prices and on the weekly chart of WTI oil on the right side of the image we can see that the instrument has been rising for two weeks now. At the 74.44 level, WTI oil has found a good resistance zone, but the price may continue higher especially now that the golden cross has been confirmed on the weekly chart. The gold cross is when the 55 period EMA crosses above the 200 period EMA and it has bullish implications in the midterm. Therefore, if the price of WTI oil breaks above the 74.44 level, then it may reach the 77.00 level where we can find the 200 month EMA and which may act as resistance. To the downside, the 68.00 level or the 62.00 level may act as support. Another possible scenario is that the price may consolidate between the 74.44 level and the 72.00 level without taking a clear direction.