Possible Pennant on the EUR/JPY

On the daily chart of the EUR/JPY we can see that the last few candles have had small real bodies with short shadows in both directions. This has created what it appears to be a Pennant formation. Usually, a Pennant formation acts as a continuation pattern, where the price continues in the direction where it was coming from. Therefore, there is a good chance that the price may try to continue going higher after the current consolidation, but a bullish breakout will not be confirmed until the price breaks above the 137.00 level. Since the price may also break to the downside, a bearish breakout will not be confirmed until the price breaks below the 136.00 level.

Rising wedge on Corn

On the daily chart of corn we can see that the price has been oscillating, but it has a small inclination to the upside where the highs have been higher than the previous ones and the lows have also been higher than the previous ones. This has formed what it appears to be a “Rising Wedge” formation. The rising wedge formation usually acts as a bearish reversal pattern, where there are more probabilities of seeing a breakout below the lower trendline. However, we must keep in mind that this is a daily chart and the price may try to go higher for the next few days before attempting a bearish breakout. If the price breaks to the downside, then it could target the 345.54 level. On the other hand, to confirm a breakout to the upside, the price would have to break above the resistance zone between the 399.50 and the 404.69.

Double bottom on the USD/CAD?

The US Dollar versus the Canadian Dollar reached a low on Friday on the 1.2900 level. During today´s session the price reached again that 1.2900 level to bounce to the upside to the 1.3000 level. It is possible for the 1.3000 level to act as a resistance, but it could also be the confirmation line of a double bottom formation. Since the price has been falling for the past few weeks, as we can see on the daily chart, if the price breaks above the 1.3000 level, it could signal a possible change in direction or a correction. Above the 1.3000 level its next resistance could be the 1.3200. Below the 1.2900 level, its next support could be the 1.2800 level.

Moving average confluence on the Nasdaq

The Nasdaq has closed the week to the upside and is keeping a very good rally from almost two weeks ago. However, the 55 day and the 200 day exponential moving averages have been practically on the same level since the beginning of the week, around the 4327 area, which is an indication that the index may try to go into a consolidation. But if the index continues going higher, then its latest high around the 4442 could act as resistance. To the downside, there are no important support levels on the daily chart for the Nasdaq until the low at the 4041 level.

The EUR/NZD keeps its bearish correction

The Euro versus the New Zealand Dollar has been retracing to the downside after a big rally. The pair breaks below the 55 day exponential moving average (purple line), around the 1.7294 level, but it has found some support around the 1.6866 level. From this current zone, the pair may try to retrace to the 55 EMA, which in such case would be completing a breakout and retracement pattern, giving us a possible short entry. If the pair continues dropping, then the 200 day exponential moving average (blue line), around the 1.6422 level could act as support.

Bullish trend on sugar

The sugar contract for March of next year has kept a very good bullish trend as we can see on the daily chart. After it made a low at the 10.11 level, sugar rallied to the 11.00 zone to consolidate around that area for a few weeks. But the bullish momentum comes in again and the price breaks above the 12.00 level to go and visit the 200 day exponential moving average, around the 12.67 level where it tried to stall due to the fact that the zone had acted as a good resistance in the past. However, the price then breaks above that EMA and it rallies to the 14.00 level. The stochastics are around the 100% level, due to the strong rally that the price has made, but it is clearly over-bought and a bearish correction may come in from the current levels. None the less, if the price breaks above the 14.00 level, then its next resistance could be the 15.00 level.

Bullish breakout on Light Crude Oil

The OPEC chief has said today that a drop in oil investments could hurt oil production and this has caused oil to rally and breakout of the recent consolidation that it had as we can see on the daily chart of light crude oil. The price has finally broken above the 55 day exponential moving average and above the upper trendline that was forming the apparent descending triangle. The bullish momentum accelerates and the price reaches the 49.00 zone. It is possible for oil to continue going higher, but the 50.00 level could act as a temporary resistance on crude.