Following a low of 4,835 on 7 April – which touched gloves with an ‘alternate’ AB=CD support (1.272% Fibonacci projection ratio) at 4,983 – the S&P 500 index is on course to pencil in an ‘equal’ AB=CD resistance (100% projection ratio) at 5,746. Notably, the 5,746 level is accommodated by a 1.618% Fibonacci projection ratio at 5,718, as well as a nearby 61.8%...
With the US dollar (USD) poised for lower terrain, this could underpin the euro (EUR) and call into question the reliability of resistance at US$1.1457 on the EUR/USD. If the pair concludes north of the 50-month simple moving average (SMA) at US$1.0914 this month and above resistance-turned-possible support from US$1.1134, the pendulum may swing in favour of...
Although the US Dollar (USD) Index has connected with a monthly support area between 98.72 and 99.67, April’s lower low at 99.01 reached levels not seen since early 2022 and price crossing below the 50-month simple moving average (SMA) at 101.91 potentially questions this support zone.
Bolstering the likelihood of additional downside in the USD are the daily and...
Safe-haven assets caught a strong bid in recent trading, directing Spot Gold to all-time highs of US$3,220/troy ounce versus the US dollar (XAU/USD). The shift towards safe-haven markets was fuelled by softer demand for the USD as markets fled dollar assets, as well as escalating trade tensions between the US and China. Unsurprisingly, the Swiss franc (CHF) and...
A long-term, double-top formation has emerged from the all-time highs of 45,073 on the weekly chart of the Dow Jones Industrial Average. With the pattern’s neckline breached (derived from the low of 41,844), chartists will likely target the structure’s profit objective, which stands at 38,613.
WTI shed nearly 10% last week and tested levels not seen since early 2021. As a result, the downside move punctured the lower boundary of a descending triangle formation on the weekly chart, extended from a high of US$95.01 and a low of US$64.34. Technically, this opens the door to possible bearish scenarios in the weeks to come toward a decision point zone at...
Unsurprisingly, the Cboe Volatility Index (VIX Index) – one of the most popular measures of US stock market volatility – recently shook hands with 30.00, levels not seen since August 2024. As a result, I am closely monitoring the daily charts of the VIX (with standard Bollinger Bands overlaid) and the S&P 500.
As shown on the charts, the VIX closed above the...
Following the pullback from lows of N$1.0903 on 20 March in the AUD/NZD cross (Australian dollar versus the New Zealand dollar) – a move that also completed a longer-term double-top pattern at N$1.1180 – buyers and sellers on the daily chart are squaring off at resistance from N$1.1002. Complementing this area is a trendline that has turned from support to...
With price action on the monthly timeframe rejecting the underside of the 50-month simple moving average (SMA) at US$1.0927 and daily price recently completing a double-top pattern from the lower edge of said SMA (breaching the neckline taken from the low of US$1.0823), EUR/USD (euro versus the US dollar) bears will likely remain on the offensive until the...
Since BTC/USD (Bitcoin versus the US dollar) rebounded from the 200-day simple moving average (SMA) earlier this month at US$78,111, speculative bullish interest has been uninspiring.
Further Downside
As far as I can see, the major crypto pairing demonstrates scope to continue exploring south until it reaches support from US$68,926 on the monthly timeframe...
Down nearly 4.0% this month, the US Dollar Index demonstrates scope to navigate deeper waters on the monthly chart towards the 50-month simple moving average (SMA) at 101.72. A similar vibe is evident on the daily chart. Following a test of support-turned-resistance at 103.94, a possible bearish scenario could unfold if price breaches the lower edge of the current...
Versus the US dollar, spot gold (XAU/USD) rallied strongly in the early hours of the US session and is now up 1.5% on the day. Currently trading at US$2,977 and refreshing record highs, the precious metal is on the cusp of bumping heads with the widely watched US$3,000 level.
Gold’s Uptrend Remains Intact
Although Gold’s multi-year uptrend is not ensured to...
As shown on the weekly chart of the S&P 500, the stock market index is on track to record a fourth consecutive week underwater. However, with price action welcoming support around 5,577, a rebound higher could be on the table. This support zone includes local descending support, extended from the high of 5,669, and a channel resistance-turned-support line, taken...
Several desks forecast that the Bank of Canada (BoC) will reduce the overnight rate by another 25 basis points (bps) to 2.75% (from 3.00%) today at 1:45 pm GMT. Since June (2024), the central bank has lowered rates by 200 bps over six consecutive meetings, bringing the overnight rate closer to the mid-point of the BoC’s neutral range of 3.25% - 2.25%.
The swaps...
Market participants will closely monitor February’s CPI inflation report (Consumer Price Index), scheduled to be released tomorrow at 12:30 pm GMT. The consensus anticipates that headline and core metrics will demonstrate signs of cooling.
Economists anticipate that year-on-year CPI inflation has eased to 2.9% (down from 3.0% in January) and that core inflation...
February has not been kind to Tesla (ticker: TSLA), settling the month down 28% and stirring levels not seen since November 2024.
I will keep the following analysis simple and concise. Despite the eye-watering drop in February, a daily support area entered the fray on Friday between US$264.82 and US$272.25, made up of the following technical...
Several themes are at play right now, which contributed to a selloff across risk assets last week. Influenced by political shenanigans (tariffs) and the Bybit exchange breach, this sent Bitcoin (BTC) 17.5% lower versus the US dollar (USD) by the close of trading on Friday.
Monthly Chart: Room to Explore Deeper Waters
There is not much to talk about on the...
Buyers and Sellers Squaring Off Between Monthly Support and Resistance
Monthly resistance from 109.33 was a technical headwind I monitored on the US Dollar Index for a while, and so far, it has not disappointed me. The said resistance welcomed moderate selling in February, and although the combination of the 107.35 high (October 2023) and 106.52 high (April...
