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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Gold tries to break an important support

On the weekly chart of gold we can see that the commodity has falling from the double top pattern at the 1365 level and tries to break below the 200 week EMA, blue line, at the 1273 level. In case of continuing dropping, the price of gold may reach the low at the 1236 level, which could act as support. Below the 1236 level, its next support level could be the 1200 zone. The red bullish trendline has acted as a good support, therefore the price of gold may pull back to the upside. In case of a bullish pullback, the 55 week EMA, just below the 1300 level could act as resistance. Above the 1300 level, the next resistance levels could be the 1326 level, but the double top at the 1365 level could act as a better resistance.

The bearish momentum accelerates on the GBP/JPY

The Pound continues losing ground versus its main counterparts, especially versus the Yen while the risk aversion rises, due to the trade conflicts between the United States and China. On the daily chart of the GBP/JPY we can see that the pair has been falling from the 154.00 zone with some pullbacks on the way down. Once it got to the 143.00 zone, the GBP/JPY started retracing to the upside and visits the 148.00 level where we can also find the 55 day EMA and where it forms a double top pattern. During today’s candle, the double top pattern is confirmed and the price of the GBP/JPY breaks below the 145.00 level. If the pair continues falling, then the 143.00 level may act as support. To the upside, the 148.00 level is still its most important resistance. For now the bearish trend is still in place, confirmed by the death cross of the 55 and 200 day EMAs and by the angle of inclination of the 55 day EMA.

Dead cat bounce on Bitcoin

Since the beginning of April, the price of Bitcoin rallied very close to the 10000 Dollar zone, but it couldn’t reach exactly that level to start retracing to the downside. The price breaks below the 9000 level and below the 200 day EMA (blue line) to bounce to the upside from the 8000 level. The price of Bitcoin tried to bounce back up, but the 200 day EMA acted as a resistance and the cryptocurrency drops again below the 8000 level. The bearish momentum accelerates below the 8000 level and reaches the 7000 level from where it bounces to the upside. After the bounce, Bitcoin drops rapidly and makes a gap to break below the 7000 level, forming what it is to known as a dead cat bounce. Bitcoin drops very close to the 5977 level and then consolidates around the 6495 level from where it started rising in April and forms a triangle or pennant. From the current consolidation the price may head in any direction. Above the 7000 level, the 8000 zone may act as resistance. To the downside, the 5977 may act again as support.

Double bottom on the Pound?

On the daily chart of the GBP/USD we can see that the pair has fallen again to the 1.3200 level and it may formed a double bottom pattern, which is a bullish reversal formation. The neckline or confirmation line of the double bottom pattern is just below the 1.3500 level, therefore the price must break above the 1.3500 level to continue rallying. None the less, the 1.3600 level along with the 200 day EMA may act as resistance, followed by the 1.3700 level. On the other hand, the death cross is still in place, which is when the 55 day EMA crossed below the 200 day EMA and that is an indication that the bearish trend is still in place. The pair may continue with its bearish trend and if it breaks below the 1.3200 level, then its next support level may be the 1.3100 level or the 1.3060.

The Euro plummets

Today’s comments by the European Central Bank has caused the Euro to plummet due to the fact that the central bank kept its interest rates unchanged. We must keep in mind that interest rates is what primarily moves a currency. Therefore, if the ECB does not hike, the Euro has no reason to rally. On the daily chart of the EUR/USD we can see that the pair drops more than 200 pips from the 1.1833 level to below the 1.1600 level. In case of continuing falling, the 1.1500 level may act as support, but a breakdown of that level could accelerate its bearish momentum. On the other hand, due to the fast drop, we could see a profit taking pullback to the 1.1700 level or the 1.1833 level. For now, the angle of inclination and the separation of the 55 day EMA with the 200 day EMA is indicating a bearish trend.