Will the weakness continue on the Dow Jones?

The Dow Jones has been pressured to the downside, primarily by the actions of Donald Trump. First, the US president imposed additional tariffs on steel and aluminum imports that included China and other Chinese products. That caused the stock market to drop. Secondly, Trump started to criticize the way Amazon uses the US Postal Service to deliver its products and that also caused the stock market to fall, not only in the US, but in Europe and Asia as well. On the daily chart of the Dow Jones we can see that the index has found a good support around the 200 day EMA (blue line) as it did at the beginning of February. Now the index has tested the 200 day EMA approximately five times and that is a sign that the instrument may continue dropping. To the downside, the next support level could be the 23000 and to the upside, the 25000 may act as support, given a bullish breakout of the 24000 level.

ActivTrades Commodities Trading

A well-balanced portfolio must include some exposure to commodities or raw materials. With ActivTrades you are able to trade all types of commodities with no hidden fees, leverage up to 1:400, low spreads and access through PC, smartphone or tablets. You will be able to trade gold, silver, copper, oil, soft grains, gasoline and even cryptocurrencies, which have fallen in the commodities sector for now. For more information on all the advantages of trading commodities through ActivTrades, please visit the following link:

https://www.activtrades.com/en/commodities-trading

At the webpage you will find more detailed information on spreads and the value of every point move, depending on the instrument. Please keep in mind that the CFDs on commodities offered by ActivTrades also have expiration dates as the actual contracts do. On the commodities timetable section you may find more information on expiration dates.

Support on Gold?

The bearish momentum accelerates on gold as shown on the daily chart and the price falls exactly to the 55 day EMA (purple line), around the 1324 level. The US Dollar rallied strongly during today’s session and that has pressured the price of gold to the downside, due to the negative correlation between the Greenback and the precious metal. At the current level, the price of gold may either bounce to the upside from the 55 day EMA or break that moving average to the downside to continue falling to the 1300 zone. In case of a bearish breakdown, the 1300 area along with the 200 day EMA (blue line) could act as support. Below the 200 day EMA, gold has the road clear to fall all the way down to the 1238 zone. In case of a bullish bounce from the 55 day EMA, gold may find some resistance around the 1350 level. Above the 1350 level, its next resistance is still the peak at the 1366 level.

Gold loses its bullish momentum

Risk appetite has come back into the markets causing the price of gold to retrace to the downside, due to its status as a safe haven asset. Gold has a very good bullish momentum since the fears of a trade war between the United States and China hit the markets. Now that certain US officials are meeting with their counterparts in Beijing, the markets are back in risk appetite mode. The main stock indexes around the world are rallying, but gold is pulling back. The rally on gold took the price of the precious metal above the 1350 level, but today the price comes back down to the 1345 level. In case gold continues falling, its next support level could be the 55 day EMA around the 1323 level. To the upside, its most relevant resistance is at the peak reached at the 1366 level.

Copper price action very technical

On the daily chart of copper we can see very interesting technical levels that have served as good resistances or supports. First of all, the price of copper has been in a downtrend during the past few months and today it has reached a low around the 294.25 level. The current daily candle has the shape of a doji, which is an indecision Japanese candlestick pattern. The price of copper did not stalled its drop at the 294.25 level by chance, exactly at that level we can find the 55 week EMA. Below the 55 week EMA at the 294.25 level, we can find the 200 week EMA at the 279.77 level. Any of those weekly moving averages may act as an important support for copper. To the upside, the 200 day EMA (blue line) at the 302.47 level may act as resistance. That same level of the 302.47 already acted as support in the past and it may change its function to resistance. Above the 200 day EMA, its next resistance level could be the 55 day EMA (purple line) at the 313.01 level.

Trend reversal on the USD/CAD?

The USD/CAD has broken below the bullish trendline that we can see on the daily chart and it could be signaling a trend reversal. However, the pair may find a good support zone around the 1.2793 level and the 1.2730 level. First of all, the 55 week EMA is crossing around the 1.2793 level, below that area we have the 55 day EMA and the 200 day EMA at the 1.2730 level. We can see now all the factors than coincide around the same zone and that could act as a good support level. The stochastics indicator has space to continue falling, therefore the price of the USD/CAD could also drop some more. On the other hand, if the pair breaks below the 1.2730 level it would have the road clear to drop to the low at the 1.2244 level. In case of a bullish bounce from the current zone, the most relevant resistance level is the peak at the 1.3121 level.

The Pound loses its bullish momentum

Apparently, the GBP/USD has lost its bullish momentum once it broke above the 1.4200 level as shown on the daily chart. However, if the pair continues rising, then the 1.4300 level could act as resistance, due to the fact that the pair has already peaked at that zone. Today’s daily candle has closed like a shooting star and that is a bearish reversal pattern. Therefore, the GBP/USD may try to pull back to the downside and probably reach the 1.4000 level. Below the 1.4000 level, its next support zone could be the 1.3900 area along with the 55 day EMA. Much lower, at the 1.3700 level we can also find a very good support zone, followed by the 1.3600 level, which has acted as resistance in the past and could change its function to support.