Silver stalls at the 55 EMA

Silver falls to the 55 day exponential moving average, around the 16.35 during a bearish pullback. It is possible for that moving average to act as support and if it bounces to the upside from there, then the price may visit the 17.00 level; however, above the 17.00 level, the 18.00 level could act as a better resistance for silver. Below the 55 day EMA, its next support could be the 16.00 level. The 200 day exponential moving average may also act as a support and much lower, the 15.00 level has been acting as a congestion zone.

The EUR/USD nears the 1.1200 level

The FED minutes for today have supported the Dollar and right now the probabilities of seeing a rate hike in June have risen to 39% after being at 15% this last Tuesday. The Dollar rallies versus its main counterparts, especially versus the Euro and the Yen. That is why the EUR/USD drops from the 1.1300 zone to the 1.1200 zone. If the price touches the 1.1200 level, that level may act as support. To the upside, the 1.1300 level may act as resistance. The 21 day EMA, yellow line, has been holding the price down and breaks below the 200 day EMA, blue line. The 55 day EMA, purple line, has not been able to break below the 200 day EMA, but if it does, that could be an indication that the pair may continue lower.

Symmetrical triangle on the USD/CAD

The USD/CAD continues oscillating around the 1.2900 level without taking a clear direction and it has formed what it appears to be a symmetrical triangle. The current formation may act as a resting point for the price to continue going higher, but first it would have to break above the 55 day EMA and above the 1.3000 level. If such a breakout happens, then the price may try to reach the 200 day EMA, around the 1.3200 level. To the downside, the pair would have to break below the 1.2800 level to consider a bearish breakdown. Below the 1.2800 level, any of the round number levels to the 1.2500 level may act as support.

WTI Oil nears the 50.00 level

WTI oil has been rallying lately after the comments from Goldman Sachs about a disruption in oil supply. Those comments have had a positive impact on the price of oil and the commodity breaks above the 46.00 level to continue higher. If the rally continues, oil may reach the 50.00 level, which could act as resistance and maybe bounce to the downside from there. A bearish pullback may take the price back down to the 46.00 level. Below the 46.00 level, the 200 day EMA may also act as support. If the 55 day EMA, purple line, crosses above the 200 day EMA, blue line, then that may be an indication that the bullish trend could continue in the middle term.

The USD/CAD in consolidation mode

The USD/CAD gets tangled between the 21 day EMA and the 55 day EMA, also between the 1.2800 and the 1.3000. From this point the pair may go in any direction. The CAD may need another push from oil in order to continue its rally. For now the US Dollar is gaining ground versus the Canadian Dollar, hence the pullback that we are seeing on the daily chart to the upside. A breakout above the 1.3000 level may take the price to the 200 day EMA, blue line, around the 1.3200 level, which could act as resistance. To the downside, a breakdown below the 1.2800 level may indicate a possible return of the bearish trend, but the pair would have to make a lower low below the 1.2500 level in order for the trend to keep going.

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Possible bullish flag on the EUR/JPY

The flag patterns along with the triangles and pennants, appear on areas of consolidation and most of these patterns act as continuation patterns, meaning that the price continues in the direction where it was coming from, but there are some that act as reversal patterns. On the 4 hour chart of the EUR/JPY we can see that the price bounced from the 122.00 zone to the upside and broke above the 55 period exponential moving average. The pair continues going higher to the 200 period EMA, blue line, around the 124.07 level. Around the 200 EMA, the price forms what it appears to be a bullish flag. Since the price coming into the formation has a bullish trend, then there are more probabilities of seeing a bullish breakout and maybe a visit to the 125.00 level. But if the price breaks to the downside, then the 55 period EMA, purple line, may act as its first support. Below the 55 EMA, the 122.00 zone may also act as support.