The Euro recovers its ground

The Euro versus the Dollar has recovered from the drop that it suffered at the beginning of today’s session, after it was known that the fine that Deutsche Bank will receive is much lower than expected. The shares of the German bank rallied immediately after the rumor along with the single currency. On the one hour chart of the EUR/USD we can see that the pair dropped to a low around the 1.1150 level, but then it went back up above the 1.1200 level to reach Thursday’s high, around the 1.1249 level. The price has formed what it appears to be an ascending triangle or pennant, which could give us a bullish breakout. In case the pair continues higher, its next resistance could be the 1.1300 level. To the downside, the 1.1200 level could act as support again if the price drops to that level.

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Brazilian Real consolidates

On the daily chart of the US Dollar versus the Brazilian Real, we can see that the price has been consolidating around the 55 day exponential moving average, which is currently around the 3.2629. The price is currently at the 55 day EMA from where it may try to bounce to the downside. If the price goes back down, its next support could be the 200 week exponential moving average around the 2.9380 level. To the upside, above the 55 day EMA we can see the 200 day exponential moving average around the 3.4214 level, which could act as its next resistance.

Corn tries to complete a double top

On the daily chart of corn we saw the formation of a double top pattern on the 55 day exponential moving average, which is running precisely at the 340.00 round number level. The confirmation line or signal line is the level at the 325.00. A breakdown of the 325 level could take the price of corn to the low at the 312.17 level. To the upside, above the 55 day EMA, its most relevant resistance could be the 200 day exponential moving average, blue line, around the 359.98 level. Another possible scenario is that the 325 could act again as support and the price of corn could stay consolidated within the current channel.

Gold in a bearish channel

Gold continues trading inside a bearish channel that we identified a few days ago on the daily chart. There is no clear direction in the middle term until the price of gold breaks out of the channel, either to the upside or to the downside. Today the price dropped to the 55 day exponential moving average, purple line, around the 1324.15 level and stalls there. The price may try to bounce to the upside from the current level, but it has been really oscillating around that moving average; therefore, it could also break it to the downside. To the downside, the next support is still the 1300 level. Below the 1300 level, the next support is the 200 day exponential moving average, blue line, around the 1269 level. Above the upper trendline of the channel, the high at the 1375.14 level could be its most relevant resistance.

Corn bounces from 55 day EMA

The 55 day exponential moving average or EMA could be used as a trend indicator, but it also acts as a support or resistance level, just like the 200 day EMA does. On the daily chart of corn we can see that the price has bounced twice to the downside from the 55 day EMA, purple line. If the price continues dropping, then the 325.00 could act as support followed by the 312.17 level, which could also act as support. Above the 55 day EMA, the 200 day EMA, blue line, around the 360.54 could act as resistance. Once the price goes above the 55 day EMA, it could consolidate and start bouncing in between the 55 EMA and the 200 EMA.

Bullish bounce on the Dollar

On the daily chart of the US Dollar Index, we can see that the price has been consolidating in a range, forming what it appears to be a symmetrical triangle. The upper boundary of the consolidation is around the 96.00 to 96.50 zone. To the downside, we can see that the lows of the candles have been higher than the previous ones, but a breakdown of the 95.00 level could take the index to the 94.00 level or the 93.00 level. Since yesterday the Dollar Index has been falling on the comments by the FED regarding interest rates, but once the index go to the 95.00 level, it stalls there and tries to bounce to the upside. For now the 96.00 level could act as its next resistance.