Weekly Technical AnalysisStart your week by identifying the key price levels and trends.
The SpreadEx Research team has analysed the most popular markets, including stocks, indices, commodities & forex.
NOTE: These charts use the ‘Pro Trading Tools’ available on the SpreadEx trading platform. To use them, log in to your SpreadEx Financials Account and click ‘Technical’ from the menu on any chart.
*KEY
Trend direction is set by the slope of the VWAP over 50 periods
Trend phase is determined by the current price relative to the VWAP (20) level (above or below)
Support & Resistance are set by the StdDev #2 Lower and Upper respectively.
Momentum is determined by the RSI level (70 as overbought and under 30 as oversold).
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Analysis
Despite the strong rally over the past two weeks, Germany 40 is still in a broader neutral trend and consolidating the huge drawdown prior to the rally. The price has risen to 18,572, which is now above the previous VWAP of 17,872. Support has been adjusted upward to 16,989, while resistance is slightly higher at 18,755. The RSI has increased to 61, indicating stronger bullish momentum.
UK 100 too remains in a neutral trend and continues in its consolidation phase. The price has moved up to 8,330, now above the VWAP of 8,185. Support remains at 7,993, and resistance has adjusted to 8,378. The RSI has risen to 56, reflecting an increase in bullish momentum.
Wall Street is testing record highs but like the other indices has maintained its neutral trend and stays in a consolidation phase. The change of trend will be confirmed once the VWAP points higher and likely accompanied by a break to new highs. The price has advanced to 41,184, surpassing the VWAP of 39,838. Support has increased to 38,156, with resistance now at 41,519. The RSI has climbed to 65.
Brent Crude continues its bearish trend, remaining in a corrective phase after the last swing lower produced a ‘higher low’. The price has slightly decreased to 78.81, closely aligned with the VWAP of 78.74. Support is now lower at 75.17, while resistance has increased to 81.50 - reflecting the wider trading range and slowing downwards momentum. The RSI remains steady at 48.
Gold has shifted right back into a bullish trend and is an impulsive phase at record highs. The price has surged to 2,515, above the VWAP of 2,463. Support has been raised to 2,373, while resistance has increased to 2,552. The RSI has climbed to 63, reflecting continued strong bullish momentum.
EUR/USD continues in its bullish trend, remaining in an impulsive phase, hugging the upper VWAP 2 Std deviations line. The price has increased further to 1.1178, well above the VWAP of 1.1016. Support is slightly lower at 1.0810, with resistance adjusted upward to 1.1223. The RSI has risen to 71, signalling strong bullish momentum.
GBP/USD has been the biggest winner of last week, making a strong shift back to a bullish trend and remains in an impulsive phase. The price has rallied up to 1.3195, now above the VWAP of 1.2903. Support has adjusted higher to 1.2551, with resistance now at 1.3255. The RSI has increased to 74, showing strong bullish momentum.
USD/JPY continues in its bearish trend, remaining in an impulsive phase. The price has decreased to 143.78, still below the VWAP of 146.26. Support has adjusted slightly to 143.50, while resistance remains elevated at 149.20. The RSI has stayed low at 31, indicating continued strong bearish pressure.
