Important resistance on the EUR/JPY

On the weekly chart of the EUR/JPY we can see that the instrument had a very good bullish trend from the 115.00 zone to the 137.51 zone, before retracing to the downside. On the daily chart of the EUR/JPY the trend seems to be bearish, but in reality it is not a bearish trend, but rather a correction of the main bullish trend on the weekly chart. Therefore, we could see the pair head back up in the longer term. However, at the moment the EUR/JPY has found a very good resistance at the 55 week EMA (purple line), around the 129.84 level. Since the bullish bounce from the 125.00 level to the upside, the pair has consolidated between the 200 week EMA at the 127.87 level and the 55 week EMA. Around the current level we can see a bearish trend line (red line), which could act as resistance, but a breakout of that resistance could take the pair to the 133.00 zone. To the downside, in case of a breakdown below the 200 week EMA, its next support could be the low at the 125.00 level.

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Possible hammer formation on the NZD/USD

The hammer is a bullish reversal Japanese candlestick pattern. On the weekly chart of the NZD/USD we can see that the price fell to the 0.6700 level and bounces to the upside, leaving behind a hammer formation. On the daily chart of the Kiwi at the left hand side of the image we can see that the price has been falling from the 55 day EMA to the 0.6700 level and forms what it appears to be a double bottom formation. Both, the hammer and the double bottom patterns are bullish reversal patterns. Therefore, we have a high probability of seeing the NZD/USD retracing to the upside. Above the 0.6800 level, its next resistance could be the 0.6900 level, but the 0.7000 level could also act as resistance. On the other hand, if the price continues dropping, then the pair may reach the 0.6600 level.

Oil tries to break resistance

The bullish pressure on WTI oil is accumulating around the 74.45, where the price finds a good resistance. However, the bullish trend in the short term is still in place, therefore the price may continue rising. On the daily chart of WTI Oil we can see that 10 out of the last 12 daily candles have been bullish and that is an indication that the bullish trend is strong. The instrument is clearly overextended to the upside, but if it continues rallying, then the 77.00 level could act as resistance, due to the fact that in that zone we can find the 200 month EMA. On the other hand, if the price bounces to the downside, then the 70.00 level or the 68.00 level could act as support. Another possible scenario is that the price of WTI oil may consolidate between the 73.00 level and the 75.00 level until new fundamental data comes in to the markets and makes it take a more clear direction.

Possible bullish continuation on WTI oil

WTI oil has had a very good bullish trend, even though OPEC has been thinking about raising its production output. It seems like the shortage may continue to support oil prices and on the weekly chart of WTI oil on the right side of the image we can see that the instrument has been rising for two weeks now. At the 74.44 level, WTI oil has found a good resistance zone, but the price may continue higher especially now that the golden cross has been confirmed on the weekly chart. The gold cross is when the 55 period EMA crosses above the 200 period EMA and it has bullish implications in the midterm. Therefore, if the price of WTI oil breaks above the 74.44 level, then it may reach the 77.00 level where we can find the 200 month EMA and which may act as resistance. To the downside, the 68.00 level or the 62.00 level may act as support. Another possible scenario is that the price may consolidate between the 74.44 level and the 72.00 level without taking a clear direction.

Oil rallies above an important resistance

On the daily chart of the WTI oil we can see that the commodity has been pulling back from the 72.91 zone to the 63.33 level. Oil consolidates around the 65.00 level since the end of May, but today oil rallies rapidly and breaks above the 55 day EMA (purple line) and breaks above the 68.00 level. In case of continuing higher, the price of oil may reach a resistance area around the 70.00 level. Above the 70.00 level, the zone around the 72.00 level and the 72.91 level may act as resistance. In case the price of WTI oil breaks below the 68.00 level, it would be entering again its congestion area around the 65.00 level where it may consolidate again. To the bottom, the 63.33 level could act as a support, but the 62.00 level could act as a better support with the 200 day EMA (blue line) crossing very close around that level.

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