GBP/USD surged higher through the first 3 weeks of July, gaining more than 400 pips across that period. Over the last week+ though, cable has been gradually edging lower, creating a potential "bullish flag" pattern.
As the name suggests, the more gradual selling pressure in the "flag" portion of the pattern is seen as less significant/predictive than the strong...
The FTSE is among a handful of major global indices signaling a rebound in the stock markets following this week's earlier selling pressure.
The UK benchmark index broke below a well-established support level around 8110 area on Thursday, before quickly recovering to rally into the close. The false breakdown marks a key reversal pattern and especially as the...
Fortune favours the brave. And after filling the gap created in June and bouncing off uptrend support dating back to when the Fed pivoted from rate cuts in November on Thursday, you get the sense it’s now or never for S&P 500 500 e-mini bulls. Either they’ll defend the level with the aim of testing the former highs or we’ll see a break lower. Until we see the...
Following the technology-led drop, the S&P 500 is now nearing potential support around 5390. This is where a bullish trend line going back to October comes into play. It will need to hold this trend line on a daily closing basis to keep the bulls lurking for fresh opportunities.
But if the selling continues, then the next possible support area to watch is the...
You don’t see unwinds of Japanese yen carry trades like we’re seeing right now outside of crisis periods. It doesn’t feel like we’re in a crisis, making me wonder just how long the current bearish move will last?
AUD/JPY has been among largest casualties, hammered lower by a combination of China pessimism, large declines on Wall Street and narrowing yield...
A two-day rebound in gold takes price into the first major resistance hurdle here at the May high-day close / April high at 2426/31 . Looking for possible price inflection off this mark with the immediate rally vulnerable while below.
Initial support back at the June high near 2387 backed by the 61.8% retracement of the June rally at 2366 - losses should be...
After falling sharply in the last few days, crude oil prices were trying to form support as WTI tested its technically-important 200-day average following the release of US oil inventories data. The data showed a larger-than-expected drawdown of 3.7 million barrels on the headline front. Stocks of oil products (gasoline and distillates) and crude inventories at...
AUD/JPY has looked terrible since breaking the uptrend established in April earlier this month, slicing through a series of supports and the important 50-day moving average. Souring sentiment regarding China’s economic outlook has been a major factor behind the unwind, combining with narrowing yield differentials between the United States and Japan, along with...
Unlike the Nasdaq 100, the S&P 500 has managed to keep it's near-term uptrend intact, painting a potentially bullish picture for the broad index.
The next two weeks sees over 60% of the index's earnings get reported, offering major potential for volatility in individual names, especially among the "Magnificent 7" stocks that are so heavily weighted in the index....
NDX is bouncing back off its rising 50-day MA following last week’s big swoon. While last week’s break of bullish trend line support is significant, the longer-term uptrend remains intact, with the 50-day EMA and 200-day SMA still rising at a solid rate.
If the earnings results in the coming weeks (starting with Alphabet and Tesla after the bell) are able to meet...
AUD/JPY approaches the June low (102.62) after closing below the 50-Day SMA (101.40) for the first time since March.
AUD/JPY Rate Outlook
Keep in mind, the selloff in AUD/JPY emerged following the failed attempt to test the 1991 high (109.70), with the decline in the exchange rate pulling the Relative Strength Index (RSI) back from overbought territory.
The...
USD/CAD is testing confluent resistance here at 1.3776/91 - a region defined by the 100% extension of the monthly advance and the 78.6% retracement of the April decline. Looking for possible exhaustion / price inflection off this mark.
Initial support rests with the original slope (currently ~1.3710s) backed by the objective monthly open at 1.3678 - losses...
The Nasdaq may experience significant volatility in the coming days due to upcoming technology earnings reports.
Technically, the bullish trend is still intact despite a recent decline that brought the index below the 20,000 mark, which now serves as a short-term resistance level. Reclaiming this level in the next few days would be a positive sign.
The...
GBP/AUD is rarely as overbought as it is right now. And when it has been this overbought in the recent past, it’s usually coincided with a near-term top. It’s also fast approaching 1.9500, a level that has been akin to poison for longs throughout 2024. Combined, it has me on alert for a potential topping signal, providing the catalyst to establish shorts with...
Nikkei 225 futures bounced strongly from the 50-day moving average overnight, mirroring the reversal in US equities during the session. With horizontal support located nearby at 39455, it provides a decent long setup, allowing for a stop to be placed below for protection targeting a push back towards the record highs struck earlier this month. While it would have...
The price of oil appears to be on track to test the monthly low ($80.81) as it continues to pull back from last week’s high ($83.74).
Crude Oil Price Outlook
The recent rally in the price of oil seems to have stalled ahead of the April high ($87.67) as the Relative Strength Index (RSI) reverses ahead of overbought territory, with a breach below $80.70 (38.2%...
After last week’s breakout above 40K, the Dow went on to rise a further 1380 points before dropping sharply in the last two days of the week. As a result, the Dow is now back near the breakout area, now testing it from above. Can we see a bounce here?
Given last week’s bullish breakout, the path of least resistance on the Dow remains to the upside, even if we...
Nasdaq 100 futures were hammered last week on the back of strong volumes, making the next few days important as Alphabet and Tesla become the first of the ‘Magnificent 7’ names to report second quarter earnings after market close on Tuesday. They will set the tone for the remaining group, especially Alphabet given perceived tailwinds for revenues and earnings from...
