The EUR/JPY at key resistance level

The EUR/JPY rallied during today’s session and broke a key resistance at the 134.479 level. The breakout has not been confirmed yet. On the weekly chart of the EUR/JPY we can see that the next candle should be above the 134.479 in order for the breakout to be confirmed. In case the rally continues on the EUR/JPY, then its next resistance level could be the 139.000 round number zone from where the price has already bounced to the downside in the past, but we must keep in mind that the pair has not visited that zone since July 2015. On the weekly chart we can also see a golden cross around the 126.371 level. The golden cross is completed when the 55 day EMA (purple line) crosses above the 200 day EMA (blue line). The golden cross has bullish implications in the midterm, therefore it is possible for the EUR/JPY to continue rallying.

The EUR/USD gains bullish strength

The EUR/USD has broken during today´s session above the 1.1800 level, but it still has to go and visit the 1.1900 level. Above the 1.1900 level, its next important resistance is at the 1.2000 zone. The MACD indicator over the daily chart is showing us a possible bullish trend change. If the MACD line (green line) crosses above its signal line (red line), then we could see a visit of the 1.1900 level or even a breakout. To the downside the most important support levels are at the 1.1700 level followed by the 1.1600 level. The 1.1600 zone has acted as a good support in the past, but now the 200 day EMA (blue line) is getting closer and closer to that level (the 1.1600) contributing to making the zone a significant support.

Possible loss of momentum on copper

So far this year, the price of copper has kept a very good bullish trend and is getting ready to close the year in a positive note. However, during the last few months of 2017, the price of copper has been consolidating around the 288.85 level as support and the 325.86 level as resistance. The 55 day EMA has also acted as a very good support or resistance zone. Lately, the price of copper has broken above the 55 day EMA and the 306.00 level, but the daily candles are showing us that the bullish momentum may be weakening and we could have a bearish retracement. The stochastics indicator is in the overbought zone and that could also be a signal of a possible reversal or correction.

Bullish flag on the Pound

Flags are chart patterns that usually act as continuation patterns. If the trend coming into the formation is bullish, then the asset has a higher probability of continuing higher, but the price may actually break out of the pattern in any direction. On the daily chart of the GBP/USD we can see that the price has formed a bullish flag. It is called a bullish flag, because the trend coming into the formation is bullish, but the flag itself has a small inclination to the downside. The GBP/USD has really found a good support at the 1.3300 level where we can find the 55 day EMA (purple line). In order for the bullish trend to continue, the price must break above the 1.3600 level. To the downside, the 1.3100 level could become a good support along with the 200 day EMA (blue line).

The EUR/USD short term

The EUR/USD has formed a breakout-pullback pattern over the 15 minute chart during this Thursday’s session. The Euro versus the Dollar has been very volatile since the Federal Reserve raised its interest rates, but it painted a dovish horizon for its monetary policy during 2018. When the EUR/USD broke below the 1.1800 level, it made a low at the 1.1770 level and pulled back to the 1.1800 level, which could now act as resistance. If the price of the EUR/USD bounces to the downside from the 1.1800 level, then it would be completing a breakout-pullback pattern, but in order for the bearish trend to continue, the price must break below the 1.1770 level.

Small comeback on gold

Gold takes advantage of the weakness in the US Dollar and tries to pull back to the upside as shown on the daily chart of the precious metal. On the chart we can see that the 200 day EMA (blue line) was a great support level before the price broke to the downside. Usually, good support levels could become good resistance levels or vice versa. Therefore, if the price of gold continues pulling back from the low at the 1236 level, it may reach the 200 day EMA at the 1268 level. The 200 day EMA may become a resistance or the price of gold may just go back down from the current levels and break below the 1236 level to try to reach the 1200 zone, which could act as a better support area.

The Dollar keeps rallying

The Dollar index has broken above the 94.00 level as shown on the daily chart while the bullish momentum may continue. The greenback has been supported by the possibility that the FED will raise its interest rates during the next meeting this Wednesday. If the index keeps rallying, it may reach the 95.00 level where it has already found resistance. In this case, the 200 day EMA is very close to the 95.00 level, making that zone an important resistance. On the other hand, the stochastics indicator is in the overbought zone, but if it drops below the 80% zone, then the Dollar index may pull back to the 93.00 or 92.00 level. In reality, the 91.00 level could act as a better support.