The EUR/USD reaches the 200 month EMA

The EUR/USD has accelerated its bullish momentum as shown on the monthly chart and reaches the 1.2300 level where we can find the 200 month exponential moving average. The area may become a very good resistance zone due to the fact that there are three main factors that may stall the rally. First, there is the 1.2300 round number level with the 200 month EMA and we can also see that the 1.2300 zone was a good support in 2012 and now it may change to resistance. In case of a bearish bounce, the most relevant support on this timeframe is the 1.1700 level. Above the 1.2300 level we don’t see any more resistance levels, except the round number levels all the way to the 1.4000 level.

Bearish breakdown on the Dollar Index

The Dollar index has been in a very good bearish trend as shown on the daily chart since it made a double top at the 95.00 zone by the end of October of last year. The instrument consolidate above the 90.00 level with the highs of the daily candles being lower than the previous ones. That was an indication that the downward pressure was building up at the 90.00 level and eventually the bearish momentum accelerated and the index breaks to the downside. In case of continuing lower, the Dollar index may reach the 89.35 level where we can find the 200 month exponential moving average. To the upside, the most relevant resistance zone is still the 91.00 level.

Consolidation on Gold

Gold has been consolidating lately and on the daily chart we can see that the instrument has made what it appears to be a symmetrical triangle. The formation could act as a continuation pattern, but the price may break out in any direction. There is a higher probability of having a bullish breakout on this case, due to the fact that the trend coming into the formation is bullish. If the price of gold breaks above the 1344 level, then its next resistance could be the 1357 level. To the downside, below the 1326 level, its next support could be the 1300 level where we can also find the 55 day exponential moving average. The 200 day EMA around the 1276 level could also act as a good support level.

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The EUR/USD is struggling with the 200 month EMA

The EUR/USD has reached the 200 month EMA around the 1.2300 level as shown on the daily chart. Due to the fact that the 200 period EMA usually becomes a good support or resistance, the pair has been having a hard time trying to break above that level. The closest resistance zone is the 1.2200 level, but the 1.2100 level could also become a good support in case of a bearish correction. Even though the pair has not been able to break above the 200 month EMA, it has been hammering that zone and a bullish breakout could be in the works. Above the 1.2300 level, its next resistance could be the 1.2500 level. For now the bullish trend is still in place, but ready for a possible pullback.

Indecision on copper

Copper has been in a very good uptrend with some pullbacks on the way up until it reached the 200 month exponential moving average, around the 330.66 level. On the daily chart we can see that the price has consolidated since it reached that moving average. The bullish momentum could have dried out, but the bullish trend in the midterm is still in place. Yesterday’s session was bullish for copper, but today most of the industrial and precious metals have pulled back. The stochastics indicator has come out of the oversold area and that could be an indication that the price may continue higher. The most important support is the 55 day EMA at the 315.40 level and its most relevant resistance above the 200 month EMA is the 340.00 level.

Where will the Pound stall?

The GBP/USD has been in a good bullish trend since it took off from the 1.2000 zone approximately one year ago. On the way up the pair has performed some bearish pullbacks as shown on the weekly chart, but in general terms the trend has been bullish and stays strong. The 55 week exponential moving average has changed its direction to the upside and keeps a good angle of inclination. The 1.3800 zone could act as resistance for the GBP/USD, but if it breaks that level to the upside, it could go and visit the 1.4000 zone where we can also find the 200 week exponential moving average. To the downside, in case of a bearish correction, the same 55 week EMA may act as support.