The Dollar index keeps its bearish trend

The Dollar index has not been able to stall its fall and breaks below the 100.00 level as shown on the daily chart. It is possible for the index to go and visit the 99.00 level during the next few days where it may stop falling, but the 200 day EMA, blue line, just below the 99.00 level could act as a better support for the instrument. What is worrisome for the Dollar is that if it breaks below the 200 day EMA, it will practically have the road clear all the way towards the 96.00 level. To the upside, the 55 day EMA, purple line, may act as resistance in case the index retraces to the upside, followed by the 101.72 level.

GBP/JPY: Will it reach the 76.4% Fibo?

Among the Fibonacci retracement levels, the ones that have the highest probability of acting as support or resistance are the 61.8% and the 76.4%. On the daily chart of the GBP/JPY we can see that the price has been retracing to the upside, but it has broken above the 61.8% Fibo. Today’s candle is showing some indecision and a possible trend exhaustion, but the pair may still try to reach the 76.4% Fibo from where it may try to bounce to the downside. But if the price breaks above the 76.4% Fibo, then it may go and visit its latest high around the 148.49 level. To the downside, in case the pair goes back down, its most important support zone is located between the 55 day EMA, purple line, and the 200 day EMA, blue line. The whole zone may act as support. Below that zone, the next support area is at the 139.00 level, around the 23.6% Fibo.

Symmetrical triangle on oil

WTI oil has entered a consolidation during the past few weeks as shown on the 4 hour chart and forms what it appears to be a symmetrical triangle. The 55 period EMA, purple line, is practically horizontal, showing us that there is no clear trend on oil at the moment. The symmetrical triangle pattern forms when the price consolidates and starts narrowing its range with lower highs and higher lows, forming a triangle. From the current levels the price may head in any direction, which is why the best thing to do is to wait for a real confirmation of a breakout, either to the upside or to the downside. To the upside, a breakout above the 54.00 level should be confirmed before trying a long entry. In such case, the price of oil may try to reach the 55.20 level. To the downside, we should wait for a breakdown below the 52.00 level, which could take the price to the 50.00 level.

The Dow Jones reaches the 20000 points

The Dow Jones industrial index reaches for the first time in its lifetime the 20000 points, prolonging what it has come to be known as “the Trump rally”. The recent executive orders by Trump along with better than expected fundamental data from Japan and Europe has helped the index in getting to the much anticipated level. However, we must keep in mind that the index is clearly over-extended to the upside and there could be a bearish correction amid some profit taking. On the daily chart of the Dow we can see that to the downside, the 19600 level could act as support in case that the index retraces to that level. Below the 19600 we can see the 55 day EMA, purple line, around the 19436 level, which could also act as a support. The same 55 day EMA is showing us that the bullish trend may be losing its strength, due to the fact that the moving average is getting too horizontal. To the upside, above the 20000 level, the next resistance could be the 20100 level.

Gold continues consolidated

Gold has had a very good bullish trend, but once it broke above the 55 day EMA, it consolidates above that moving average and below the 200 day EMA, blue line. The price of gold also stays above the 1200 level and it could try to reach the 200 day EMA, which could act as resistance. In case gold breaks above the 200 day EMA, then the road is clear to the 1300 level. To the downside, below the 55 day EMA, purple line, the price of gold could try to go and visit again the low at the 1122 level, but we must keep in mind that any of the lows on the daily candles could act as support.

Good rally on the Pound

The GBP/USD has had very volatile sessions during the past two days, but the rally seems to be in place after it broke above the 55 day EMA, around the 1.2372 level. It seems like it will reach the 1.2600 level, which could act as resistance. For now the pair stays above the 1.2500 level. Above the 1.2600 level, the pair could have the road clear all the way to the 1.2800 zone. In case the pair comes back down and breaks below the 55 day EMA, then the 1.2300 level could act as support, followed by the 1.2200 level, the 1.2100 level and finally the most important support zone is at the 1.2000 level.

Indecision on gold

Gold has been stuck around the 1200 zone with a good support zone at the 55 day EMA, purple line, which is currently around the 1194 level as shown on the daily chart. The bullish trend is still in place, but the price of the precious metal may head in any direction from the current levels. To the downside, the only important support that we see is the low that it reached around the 1122 level. To the upside, gold may still try to reach its 200 day EMA, blue line, which is currently around the 1233 level. But if the price of gold breaks above the 200 day EMA, then the road is clear all the way to the 1300 level. Another possible scenario is that the price may stay consolidated between the 55 day EMA and the 200 day EMA.