Excellent rally on the GBP/USD

The GBP/USD has a very good rally from the 55 day EMA zone (purple line) where it consolidated for a few days before breaking above the 1.2400 level and coming very close to the 1.2500 zone. The bullish momentum accelerates above the 1.2400 level, but it is possible for the 1.2500 to act as a resistance. However, a breakout of the 1.2500 level could clear the way for the pair to reach the 200 day EMA (blue line), which just above the high that it made at the 1.2709 level. In case of a bearish pullback, the first area of support could be the 1.2400 level or the same 55 day EMA. But any of the round number levels like the 1.2300, the 1.2200, or the 1.2100 levels could also act as support.

Head and shoulders pattern on the AUD/USD

On the 4 hour chart of the AUD/USD we can see that the price has formed an inverted head and shoulders pattern, which up to now it has been working nicely. The price of the AUD/USD was consolidating during the second part of February, but once it broke below the 0.7662 zone, it drops to a low at the 0.7490 zone. From the 0.7490 zone the price bounces to the upside, forming the left shoulder of the pattern and then breaking above its neckline (red line) to continue all the way up to the 0.7700 zone. From the 0.7700 zone, the pair retraces back to the 0.7662 level and goes back up to the 0.7700 zone to form a possible double top pattern. If the AUD/USD breaks below the 0.7662 level, then it may change direction to the downside. Above the 0.7700 level, its next resistance could be the 0.7740 level. Another possible scenario is that the pair may stay consolidated at the current levels like it did in the past without a clear direction.

ActivTrades Webinars

Don’t miss all the great advantages that the Webinars at ActivTrades has to offer. The broker is always looking for ways to help its clients in becoming better traders, that is why the company has a great variety of tools and trading courses available to anyone who would like to join in. To register for the upcoming Webinars, please visit the link below. Remember that all the courses and Webinars available are free of charge, all you have to do is register with the broker:

https://www.activtrades.com/en/webinars

The topics are constantly changing to help all types of traders, from beginners to advance traders. There are Webinars on technical analysis and fundamental analysis, also on trading and market psychology. The most recent Webinars are focusing on the upcoming events for the second quarter of the year and the political risk that may arise from Europe and around the world. This is definitely a great opportunity that will enhance your knowledge of the markets and make you a better trader.

Silver stalls its pullback at the 200 day EMA

Silver has been falling rapidly since it changed its trend to the downside and breaks below the 200 day EMA (blue line), which currently around the 17.40 level to reach a low around the 16.80 level. At the 16.80 level, silver makes a double bottom formation and bounces to the upside to reach the 200 day EMA level again, which coincides with the 55 day EMA at which point the bullish momentum dries up and comes back down. The previous candle has the shape of a doji with a long upper shadow, indicating that the sellers have come in and have taken control of the market. The price of silver gets below the 200 day EMA and if the next candle is bearish, then silver could go back to its downtrend and it could visit again the 16.80 level or the 16.60 level.

The EUR/JPY retraces to the 122.00 level

The EUR/JPY has been having a good bullish trend as shown on the daily chart, which has been supported by the pullbacks that the price has made on its way up. The small pullbacks are important for a trend to be kept, due to the fact that these pullbacks give the opportunity for new investors or traders to come into the market and keep the trend going. The EUR/JPY made a high very close to the 123.00 level from where it retraces to the 122.00 level and stops there. From that round number level the pair may try to bounce back up and continue with its bullish trend, but the 123.00 level may act as resistance. Below the 122.00 level, the next support could be the 55 day EMA (purple line), which is currently around the 120.85 level. 

Gold: Stuck around the 1200.00 level

Gold had a very good fall o bearish pullback, which in reality has become in a trend reversal in the short term. However, once it got to the 1200.00 level, gold stops its falls on that level, something that we had already anticipated due to the fact that the zone is a round number level and a very important psychological area. For now the price of gold in consolidating just above the 1200.00 level, possibly waiting for new information to come into the markets to take a clear direction, either to the upside or to the downside. If the price bounces to the upside from the 1200.00 level, then the 55 day and 200 day exponential moving averages may act as resistances. In case the price breaks below the 1200.00 level, then its next support could be in the 1180.11 zone.

WTI oil finds resistance at the 50.00 level

WTI oil was in a well-defined consolidation since the beginning of December up to recently, between the 52.00 level and the 54.00 level. On Wednesday the price of WTI oil breaks below the 52.00 level after the US oil inventories came out well above the expected reading and causes the price of crude to drop. The fall takes the price of WTI oil to the 50.00 level, which initially acts as support, but yesterday the drop continues and oil reaches a low around the 48.54 level, breaking below its 200 day EMA, blue line, around the 49.38 level. Today oil tried to claim back some of the ground that it lost during the last couple of days, but once it got to the 50.00 level, that level changed from support to resistance and the price drops again from that level. If the price of WTI oil drops below the 48.54 level, then the bearish momentum may accelerate even more and it could have the road clear all the way to the low at the 44.50 zone. To the upside, above the 50.00 level, the next important resistance is at the 52.00 level, which could change its role as a support to a resistance.