Copper stays consolidated around the 55 day EMA

Copper had a good bullish trend until the end of August, but at the beginning of September it started to retrace to the downside after reaching a high around the 317.77 level. The bearish pullback on copper takes it to the 55 day EMA around the 293.00 level. The price action on the commodity has actually stalled at the 293.00 level without taking a clear direction. From this point on, copper could take off in any direction, therefore it is better to wait for a clear trend before making any decision. If it bounces to the upside, then copper would be going back to its bullish trend and the next resistance to break would be the peak at the 317.77 level. To the downside, in case of a bearish breakdown, the price would have the road clear all the way to the 275.00 level or the 200 day EMA (blue line).

The EUR/USD could fall to the 1.1800 level

The EUR/USD made a high at the 1.2100 level as shown on the daily chart and then consolidated for a while, but in the middle of the consolidation the price formed what it appears to be a head and shoulders pattern with the neckline close to the 1.1800 level. Around the 1.1800 level we can also see the 55 day EMA, which could act as support, but if the EUR/USD breaks that level to the downside, then the head and shoulders pattern would be confirmed and the pair could fall to the 1.1700 level. If the pair bounces to the upside from the 1.1800 level, then it could find some resistance on the 1.2000 level or the 1.2100 level.

Possible support on copper

Copper had a good rally while the demand for the industrial metal rose in China, which is the major consumer of copper in the world. However, once the price reached the 317.77 level, the bullish trend lost its momentum and copper retraced to the downside. The bearish pullback may have been caused by profit taking due to the fact that the commodity was overbought. None the less, once the price of copper retraced to the 293.00 level, it stalled there and it may try to bounce to the upside, especially when around that zone we can find the 55 day EMA (purple line). Actually, that same 293.00 level acted as resistance in the past and it may act as support in this occasion. Therefore, the price of copper may bounce to the upside, but in order to keep its bullish trend, it must break above the 317.77 level. Below the 293.00 level, its next most important support may be the 275.00 level.

The EUR/USD is still in consolidation

The euro lost ground versus the US Dollar during Wednesday’s trading session after the FED announcement which causes strength on the Dollar. However, despite the apparent drop on the pair, the bullish trend is still in place on the EUR/USD and stays consolidated between the 1.1900 level and the 1.2100 level. To the downside, the closest support is at the 1.1800 level where we can find the 55 day EMA. The 1.1700 level may also act as support, as it did at the beginning of August. In order for the bullish trend to stay in place, the EUR/USD must break above the 1.2100 level. The EUR/USD keeps a bullish trend since the beginning of this year and it may possibly close the 2017 year with the actual bullish trend, even if the FED keeps raising its interest rates.

Resistance on the EUR/JPY?

The Euro versus the Yen has been trending upwards in a sustainable manner as shown on the daily chart. The rally on the EUR/JPY has been caused mostly by weakness on the Yen and not as much by strength on the Euro. The bullish momentum has taken the pair to the 134.00 level, which could act as resistance, due to the fact that the round number levels usually act as support or resistance areas. The rally on the EUR/JPY has also caused the stochastics indicator to enter the overbought zone, therefore it is possible to see a bearish correction on the pair. If the EUR/JPY bounces to the downside, then the 132.00 level could act as support. On the other hand, the bullish trend is still in place and the pair may try to break above the 134.00 level and maybe reach the 135.00 level.

Pullback on gold

Gold continues pulling back to the downside from the high that it made on September 8^th around the 1357 level and it is coming near the 1300 level. The 1300 zone has acted as resistance in the past and actually a breakout and pullback pattern was formed in that area, making it a support before rallying towards the 1357 level. On this occasion it is possible for the price of gold to find a support at the 1300 level, especially if the 55 day EMA (purple line) stays close to that level. The recent rally on the Dollar has caused the price of gold to drop and if the Federal Reserve decides to hint about a possible rate hike on Wednesday, the Dollar may rise even more, causing gold to maybe break below the 1300 level. Below the 1300 level, the next important support on the daily chart of gold is the 200 day EMA around the 1260 level.

The GBP/JPY continues around resistance

The Pound versus the Yen had a good bearish trend that took it to the 140.00 level where it started to retrace to the upside, as shown on the daily chart. Before the bullish pullback on the pair from the 140.00 level, we can see that the 200 day EMA, blue line, had been acting as a good support-resistance area. Actually, around the middle of August we can see a breakout and pullback pattern developing around the 200 day EMA from where the price continued dropping towards the 140.00 level. At the moment, the GBP/JPY has retraced to the 200 day EMA, where we can also find the 143.00 round number level contributing to making the area a good resistance zone. The GBP/JPY may possibly bounce back down from the 143.00 zone and try to visit the 140.00 level again. But if the pair breaks above the 143.00 level, then it may find some resistance at the 144, 145 or the area between the 146.83 and the 147.80 levels.