Oil continues its rally

Light crude oil continues correcting to the upside and breaks above the 47.00 level. Due to the strong rally that oil has made lately, it is possible to see a pullback to the downside in a profit taking move. However, the MACD indicator is showing us that the uptrend is still in place and it is very strong, therefore the price may try to go and visit the 57.00 level, which is very close to the 200 day exponential moving average, which could act as a resistance. If the price retraces to the downside, then the 44.00 level could act as support, followed by the 40.00 level.

USD/CHF: Oscillation around the 200 EMA on the 4 hour chart

The Dollar versus the Swiss Franc holds on to yesterday’s gains, but it stays oscillating around the 200 period exponential moving average on the 4 hour chart. It looks like price has formed a breakout and pullback pattern around that moving average and it is possible to see a bullish continuation next week. The bullish trend is still in place and if the price continues rallying, then the 0.9800 level could act as a resistance like it did in the past. However, if the price breaks below the 55 period exponential moving average, around the 0.9574, then the bearish momentum may accelerate and the pair may correct to the downside.

Platinum continues strengthening for today

Platinum has been rising along with other precious metals after the global markets started correcting to the upside, starting with the stock markets in New York and following with the Asian markets and the European markets. Even though the bullish momentum is still in place in platinum, we can see on the daily chart that the metal has not been able to stay above its 200 period exponential moving average, around the 1001 level. Its most recent high is around the 1007 and if it breaks that level to the upside, then the price may try to go and visit the high around the 1035 level. If the price returns to the downside, then the 987 level could act as support, but below that level, the double bottom around the 968 level could act as a better support.

EUR/USD: Possible bullish bounce from the 200 day EMA

The Euro versus the Dollar has retraced to the 200 day exponential moving average (blue line), around the 1.1334 level from where it is trying to stall at the moment. The bullish momentum is still in place in the pair and it is possible for the 200 EMA to act as support from where the price may bounce to the upside. If the price bounces to the upside, then the high around the 1.1708 level may act as resistance. But if the price breaks below the 200 EMA, then the pair may try to go and visit the 55 EMA (purple line), around the 1.1126 level, which could act as support.

The French CAC40 bounces from the 200 week EMA

The 200 period exponential moving average or EMA, usually acts as a very good support or resistance zone, especially on the higher time frames. On the weekly chart of the CAC40 we can see that yesterday the index dropped to the 200 EMA (blue line), around the 4226, but it stalls there and bounces to the upside. This is a good example of how that moving average can act as a good support or resistance zone. Even in the past, we can see that it has already acted as support for the index. The relatively long shadow that the weekly candle is leaving behind is telling us that there is a probability of the CAC40 to keep retracing some more to the upside for next week. If the index keeps retracing to the upside, then the 55 week EMA (purple line) may act as resistance.

The Dollar continues breaking historic highs versus the Mexican Peso

Emerging market currencies continue getting hurt by the risk aversion that has been created in the markets due to the incredible drop in Chinese stocks, which have translated into further drops in the global markets. The Mexican Peso is one of those currencies that has been dropping lately to all-time lows versus the US Dollar. The USD/MXN has reached a high around the 17.25 level, but if it continues rallying, then the 17.50 may act as a temporary resistance. Its closest support could be the 17.00 level, but below that zone we don’t seem to have any more relevant supports until the 16.50 level. Its 200 day exponential moving average is very far away from the current price levels, indicating that the bullish trend has been very strong. The stochastics indicator is above the 80% line and stays in the overbought zone due to the fact that the indicator cannot rise above the 100% line.

Copper remains weak

Copper is still under pressure due to the global drop in demand of the metal and the slowdown of the Chinese economy. Copper made a low around the 226.00 level and even though it has retraced to the upside towards the 233.00 level, it remains in a consolidation between those two levels. The stochastics indicator on the 4 hour chart is around the 50% level, due to the consolidation that the metal is currently having. If the price breaks above the 233.00 level, it may try to go and visit the 200 period exponential moving average around the 240.24 level on this 4 hour chart. Below the 226.00 level, its next support could be the 224.00 level.