Daily market overview DXY, XAUUSD, OIL, S&P500, DAX, EURUSD, USDJPY, AUDUSD, NZDUSD, USDCAD, GBPUSD, BITCOIN
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DXY-USDollar index
The instrument had briefly gone below the 91-92 zone, and 200 SMA weekly (blue line) 93.28 level. This break if confirmed with the strong weekly close below 93 would lead to a deeper fall targeting 88 level. We are expecting another leg higher from here for a retest of the 97-98 zone where the weekly SMA cross is visible. USD positioning in the market is again making the stage for range trading if it stays above the 93.
XAUUSD-GOLD
Gold is locked in the 1260-1350 weekly range. The close above 1300 is required for the new leg higher in the channel. Since the instrument has broken above the falling Pitchfork channel and is turning above the SMA’s we are expecting an upside extension higher. This extension higher could have a target zone 1390-1400 with the possibility of further extension into the Apr. 2016 top near 1450.
OIL
The instrument is in the weekly wedge and is reacting with the spinning top formation candlestick formation just below the 58.400. We are expecting this range to continue the first downside to the middle of the wedge 51-51.700 zone which is a strong downside resistance/support zone. Only a clear and strong weekly close/break above the 60 level would lead to a range break an extension higher.
DAX
DAX is closing the week on the critical 1297 level with the possibility of extension lower after the previous bearish shadow candlestick formation. The Recent top was established at 13600 level just at the median line of the upside Pitchfork channel. Based on daily closes we are expecting the continuation lower for a test of 12350-12570 zone.
S&P500
S&P500 is tracking the weekly uptrend Pitchfork channel and is reacting to a strong resistance 2575 level. The weekly close is calling for a turn lower from here although the uptrend is strong. Turn frm here could expose 2450-2500 zone. Only the strong close above 2600 would call for an extension higher.
EURUSD
The pair has closed the week below 1.18000 level. There are no signs of a bearish turn at this stage so we are expecting the next week of another consolidation. Clearly, the pair has gone above the 200 SMA (blue line) 1.16520 level but there could be another leg lower before continuation higher. Targeted area in the case of a bearish turn here is 1.14000-1.16000.
USDJPY
The pair is in the middle of the weekly range and is testing the strong area of SMA’s crossing. Reaction from here will be important for the further continuation of the range. We are expecting this sideways action to continue in the coming weeks especially in the case of a risk-off market environment.
AUDJPY
The pair is breaking below the uptrend wedge line. This break is calling for a medium-term top with the possibility of extending lower for a test of the 82-83 zone. We are expecting a strong continuation lower
AUDUSD
The pair is getting near the LT uptrend line 0.7500 line. We are expecting the 0.7500 level test in the coming weeks. In the case this level would be strongly broken to the downside we will be looking for an extension into the 0.7200 level.
NZDUSD
The pair has broken the recent medium-term uptrend. There is a case now for the bearish extension into the 0.6800 level where the LT uptrend line lies. In our opinion, the recent medium-term leg higher has been finished and we are expecting further weakness in the pair.
USDCAD
The pair has bounced from the LT uptrend line and is continuing above the 200 SMA (blue line) 1.2534 level. We are expecting continuation higher and any dip to 1.2600 level should be used for buying into new leg higher.
GBPUSD
The pair is facing the strong resistance to the upside following a strong weekly gain after basing at the bottom. We can’t exclude the downside break at this point and we will look for a strong weekly close above the 1.3250 level for the upside continuation.
Bitcoin
The instrument is printing the recent top again trying to engulf the previous bearish candle. Extension higher will be possible only with the weekly close above the 8000 level. We are expecting volatile price action with the possible dips into the 6400-6700 zone.
ETHEREUM-ETH/USD
The instrument is in the consolidation triangle, unable to break above the 350 level. We will look for an upside continuation only in the case of the strong weekly close above the 380 level until then the consolidation will continue.
The weekly preview will give you an important insight into the long-term price action. Look for strategic trend direction clues in this analysis.
Technical analysis on instruments listed here is just an indication of possible price movement and does not indicate any trade action which could be initiated by investors and members of this site.