Good resistance on the Mexican Peso

The Mexican Peso along with most of the emerging market currencies has been suffering strong drops versus the Dollar, but on the 4 hour chart of the USD/MXN we can see how the Dollar has been losing strength versus the Mexican Peso and it seems like it has formed a bearish channel. The pair has made some bullish retracements inside the channel, but the 55 period exponential moving average (purple line), has acted as a good resistance. That is why now that the price is visiting once again that moving average, it may act as a resistance and the price may try to bounce to the downside. If the price bounces to the downside, then the low at the 16.32 level may act as a support. If it breaks to the upside, the 200 period exponential moving average (blue line), may act as a resistance.

Copper retraces to the downside during today’s session

Copper has had a good uptrend for the last few weeks as we can see on the daily chart of the December contract. During the last few days it has stay consolidated just above the 55 day exponential moving average (purple line), which has acted as a good support. Today we see that the price has retraced to that moving average, but it could continue rallying. If the price continues rallying then its next resistance could be the 249.31 level. Above the 249.31 level, its next resistance could be the 200 day exponential moving average (blue line) at the 257.56. If it breaks below the bullish trendline, then its next support could be the low at the 222.66 level.

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Follow-up on the “Rising Wedge” of corn

A few days ago we identified a Rising Wedge formation on the daily chart of corn and we said that it would probably take it a few more days before breaking to the downside. However, today we see that the price has broken below the lower trendline of the rising wedge and the bearish momentum may accelerate from this point on. The target of the rising wedge is the lowest level of the formation, meaning the low at the 345.54 level. Even though the price may do some retracements along the way, it is possible for the price to reach that level. If the price goes back inside the formation, then the pattern will be invalidated and the 399.50 level could act as resistance.

Possible Pennant on the EUR/JPY

On the daily chart of the EUR/JPY we can see that the last few candles have had small real bodies with short shadows in both directions. This has created what it appears to be a Pennant formation. Usually, a Pennant formation acts as a continuation pattern, where the price continues in the direction where it was coming from. Therefore, there is a good chance that the price may try to continue going higher after the current consolidation, but a bullish breakout will not be confirmed until the price breaks above the 137.00 level. Since the price may also break to the downside, a bearish breakout will not be confirmed until the price breaks below the 136.00 level.

Rising wedge on Corn

On the daily chart of corn we can see that the price has been oscillating, but it has a small inclination to the upside where the highs have been higher than the previous ones and the lows have also been higher than the previous ones. This has formed what it appears to be a “Rising Wedge” formation. The rising wedge formation usually acts as a bearish reversal pattern, where there are more probabilities of seeing a breakout below the lower trendline. However, we must keep in mind that this is a daily chart and the price may try to go higher for the next few days before attempting a bearish breakout. If the price breaks to the downside, then it could target the 345.54 level. On the other hand, to confirm a breakout to the upside, the price would have to break above the resistance zone between the 399.50 and the 404.69.

Double bottom on the USD/CAD?

The US Dollar versus the Canadian Dollar reached a low on Friday on the 1.2900 level. During today´s session the price reached again that 1.2900 level to bounce to the upside to the 1.3000 level. It is possible for the 1.3000 level to act as a resistance, but it could also be the confirmation line of a double bottom formation. Since the price has been falling for the past few weeks, as we can see on the daily chart, if the price breaks above the 1.3000 level, it could signal a possible change in direction or a correction. Above the 1.3000 level its next resistance could be the 1.3200. Below the 1.2900 level, its next support could be the 1.2800 level.