The Brazilian Real stalls its fall versus the Dollar

The emerging markets currencies have been affected lately by the drop in commodity prices and the rally of the US Dollar. However, on the 4 hour chart of the USD/BRL we can see that the pair has found a good resistance around the 3.5619 level, which is indicating us that the Brazilian Real is starting to gain some ground versus the Dollar. The pullback has taken the pair to the 3.4236 low where it has try to go back up, but on the last 4 hour candle we can see that the bearish momentum seems to have come in again. If the pair breaks below the 3.4236 level, then the 200 period exponential moving average (blue line), around the 3.3005 level could become its next support. To the upside, the 3.5619 level could become resistance again if the pair visits that zone one more time. The MACD indicator is showing us that the downtrend is still in place, but the bars on the histogram are showing us that the downtrend is losing its strength.

Soy rallies and it is about to visit its 200 day EMA

The commodity markets have been under pressure during the past few weeks, but we see that today they seem to take a breather and soy rallies rapidly very close to its 200 day exponential moving average (blue line), around the 1012 level. That 200 day EMA may act as a resistance and the commodity may try to stall there or even bounce to the downside. However, if the rally continues and soy breaks above that level, it may try to go and visit the high around the 1053, which could act as a resistance like it did in the past. To the downside, the 936 zone could act as support where it made its latest low. Due to the strong rally that the commodity has made, the stochastics oscillator is entering the over-bought zone above the 80% level, but a pullback to the downside doesn’t seem to be near until the indicator drops below the 80% level.

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Silver stays consolidated, but keeps its bearish trend

Silver and gold have a very close positive correlation, which means that when gold drops, silver also drops and vice versa. The rally on the Dollar has been hurting the precious metals that quote in Dollars like gold and silver. That is why silver has kept a well-sustained bearish trend since the middle of May, as we can see on the daily chart. At the moment, silver has found a good support around the 14.35, which it has already visited two times and where the Fractals have shown possible bullish reversals, but the 15.00 level has acted as a good resistance and it has not allowed the price to show a real bullish correction yet. The Parabolic SAR points are relatively away from the current price and are pointing to the downside, indicating that the bearish trend is still in place regardless of the consolidation. However, if the price breaks above the 15.00 level, that could be an indication that the price is correcting to the upside, but if it breaks below the 14.35 level then the bearish momentum may come in again and the metal may try to continue with its downward trend.

British stock market finds some kind of resistance

The FTSE100 index from the United Kingdom has had a good uptrend, as we can see on the 4 hour chart, since it made its latest low at the 6436 level. At the moment, the index is at its 200 period exponential moving average on the same 4 hour chart, around the 6678, where it is trying to stall its rally. Even though the index has tried to break to the upside its 200 EMA, it has not been able to confirm such breakout. None the less, the bullish trend is still in place and if the UK fundamentals keep coming out positive, it is possible to see a breakout of the 6713 level. In case the index keeps heading higher, then the 6761 could act as resistance as it did in the past. The stochastic indicator (green line) has reached the 80% level, but it has crossed below its signal line (red line), indicating that there could be a correction to the downside, due to the fact that the index is over-extended to the upside.

The GBP/USD has been very volatile for today

The Pound versus the Dollar has been in a consolidation since last week between the 1.5560 zone as support and the 1.5678 zone as resistance. The round number level of the 1.5600 has served as a middle point in the consolidation from where the price has been oscillating up and down. On the one hour chart we can see that the volatility has been high, due to the relatively long real bodies on the candlesticks and long shadows in both directions. During this type of price action it is very difficult to trade due to the fact that the pair has not taken a clear direction. However, this high volatility periods could be useful for scalping trading, but it is also risky. To the upside, the 1.5700 level could act as resistance and to the downside the 1.5500 level could act as support.

Possible bearish continuation on Coffee

Coffee has been somewhat volatile for today, but there have been some trading opportunities around key levels on the 30 minute chart. At the beginning of the session, the price of coffee falls to the 121.50 level and rallies from that level to the 200 period exponential moving average (blue line) on this very same 30 minute chart, around the 124.94 level. Even though the price did not touch exactly the 200 EMA, we can see how it bounces back to the downside and it seems to continue with its bearish trend. The Stochastics are showing us that the bullish momentum seems to be losing strength and they are trying to head back to the downside. If the price continues falling, then it is possible for the 121.50 to become support again. But if it breaks the 121.50 to the downside, then the 119.60 zone may also become a good support for the commodity. If the price breaks above the 200 EMA, then its latest high around the 127.42 level could become resistance.