EUR/USD:
Looking at the weekly chart, we can see that prices are testing the support area of our ascending channel at 1.200, which coincides with the 50% Fibonacci retracement and 78.6% Fibonacci extension. We could see a further upside to test our resistance area at 1.2300, in line with the graphical swing high resistance and 78.6% Fibonacci extension. On the daily time frame, prices are holding nicely above the ascending trend line and support area at 1.200 which can also be found on the weekly time frame.
On the H4 timeframe, prices are approaching our support area at 1.2060, which coincides with the graphical support area, 50% fibonacci retracement and 161.8% Fibonacci extension. This would be an interesting level for buyers and recent price action around that area suggests it is a strong area of demand flowing, where we could see a further upside to our short term resistance level at 1.2180, in line with the graphical swing high resistance on the H4 time frame.
Areas of consideration:
- 2060 support area found on H4 time frame
- 2180 resistance level found on H4 time frame
GBP/USD:
Looking at the weekly chart, we can see that prices are holding nicely above our ascending trend line and weekly support area at 1.3500 where we could see a further upside to the weekly resistance level at 1.4300, in line with the graphical swing high area and 78.6% Fibonacci extension. On the daily time frame, our support area at 1.3500 – 1.3600, which is also found on the weekly time frame, coincides with the 23.6% Fibonacci retracement, where we could see further upside in prices above this area.
On the H4 timeframe, prices are facing bullish pressure from our ascending trend line and support area at 1.3860, in line with the 23.6% Fibonacci retracement. We could see a further upside above this level to our short term resistance area at 1.400, in line with the 78.6% Fibonacci extension.
Areas of consideration:
- 400 resistance area resistance area found on H4 timeframe
- 3860 support level found on H4 timeframe
AUD/USD:
From the Weekly timeframe, we can see that the price has pushed further towards the previous high at 0.78207, from the week of 4 January (2021), the price is still on the bullish trend-making higher points since March (2020). On the Daily timeframe, the price has successfully reversed from the Quasimodo resistance of 0.7784, in line with the previous high. On H4, we could see that AUDUSD showed a strong 75 pips pullback when it reached the major level of 0.78, within the resistance zone consisting of the -61.8%, 161.8% retracement, 0.782 level from the Weekly timeframe, as well as the 0.7784 level from the Daily timeframe. And currently, the price is testing the support level of 0.77361, in line with 78.6%, 127%, and -27% Fibonacci retracement. If this level is broken, we may see price making its way towards the major level of 0.77, which also happens to tap on the ascending trendline on Daily.
Areas of consideration:
- H4 testing Support area of 0.7736, a bounce may occur to push prices back into resistance zone of 0.78
- If H4 manages to break through the support of 0.7736, the price may continue moving towards the major figure of 0.77
USD/JPY
The US dollar continued its advance up north on Wednesday, where it tapped the 106.11 resistance and reversed ( horizontal swing high resistance ). If price approaches the support level at 105.77 where the 61.8% fib extension and horizontal pullback support are , we could see buyers step in further and push price higher up again towards the 106.110 resistance level and beyond.
Against the backdrop of the H4 timeframe, price broke out of the weekly declining wedge (106.94/104.18) and saw a slight pullback, before pushing up higher again. On the daily chart, we see that price is now pushing up to test the MA (200) again after making a slight pullback. This shows us room for bullish momentum upwards to test the resistance level at 106.060 level. However, before that on the H4 chart, we couldn’t ignore the support at 104.58 where the horizontal pullback support is.
Areas of consideration:
- 06 resistance on the Daily timeframe is a possible upside target
- 768 support level on H4 in line with the 61.8% fib extension and horizontal pullback support
USD/CAD:
Looking at the weekly chart, prices have respected the descending trendline drawn from 13 April (2020) high and is approaching the 2018 Yearly opening level at 1.2579. It is important to note that the long-term picture has pointed the direction down (trend) since March (2020). In the daily time frame, the price has made a pullback towards the descending trendline. And on the H4 timeframe, we are seeing a 100pips bullish move back towards the descending trendline, currently, the price sits right under the 78.6% Fibonacci retracement, in line with January’s opening level as well as a major figure of 1.27. We may possibly see the continuation of the bearish trend after testing this zone.
Areas of consideration:
- H4 testing major resistance in line with 1.27 figure, 78.6% retracement, and descending trendline resistance.
- Weekly and Daily both showing bearish momentum in the longer-term picture, in line with a bearish view.
USD/CHF:
USD/CHF continues to show strong bearish momentum for a further move down south after a slight pullback on Wednesday. On the weekly timeframe, price is bouncing at the 0.88850 level which is in line with our 61.8% Fibonacci retracement but holding below the weekly trendline and major resistance at 0.90500. The daily timeframe shows a similar bearish picture, with price holding below the descending trendline and moving average resistance.
Looking at the H4 timeframe, we see the price has made a pullback to the upside and is now testing the 0.89400 level, which is a horizontal swing high resistance. Price could possibly see a reversal at this level, and push lower to the weekly support level at 0.88450 level, which is in line with our -27.2% Fibonacci retracement and 127.2% Fibonacci extension. Otherwise, should price break the 0.89400 level, we could potentially see a stronger pullback to test the weekly resistance at 0.90500 level instead.
Areas of consideration:
- USD/CHF continues to show strong bearish pressure, as price holds below the trendline and moving average resistances .
- Price is making a slight bounce and is testing the 0.89400 level on the H4 timeframe.
- 88450 level, which is the weekly support, should be watched closely.
Dow Jones Industrial Average:
On the weekly chart, price continues to hold above 31272 as markets made a new high. Traders can expect to see price pushing even higher towards the next resistance at 32643. Otherwise, failure to hold above 31272 could mean that this is a fake out and probably pull back towards 29341 support. With no change for the Daily, price continues to hold very strongly above ascending trendline support. Traders should be careful when deciding to trade any short term pullbacks as the bullish momentum on the longer term is very strong.
On the H4, price drifted higher, approaching 31773 resistance. Technical indicators continue to show room for further bullish upside. A break and close above 31773 will see more buyers entering with their longs to push price higher, possibly towards 33019. Otherwise, failure to hold above 31272 could see price swing back and come back to the 61.8% Fibonacci retracement level and moving average support at 30521.
Areas of consideration:
- 31272 key support to watch
XAU/USD (GOLD):
On the weekly timeframe, gold is still holding above long term moving average support.Price is drifting closer towards 1764 support, above which there could be a possibility of a bounce reaction. On the daily chart, price drifting sideways between 1764 support and 1875 resistance. Price could still very well be drifting sideways between these two levels until a clear break of the daily descending channel shows any confirmation of a directional bias.
On the 4H timeframe, price broke below support and is coming close to 1785 support, which is both a Fibonacci confluence level and also the recent graphical swing low. We see a low probability bullish bounce above this support where buyers could possibly enter and take advantage of an intraday long, or they could also possibly be closing out their long positions upon any bounce. Failure to hold above 1785 could see price push lower towards weekly support at 1764.
Areas of consideration:
- Watch 1785 near term support for any chance of a bounce
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