The Santa rally is here; indices are skyrocketing with the DAX finally hitting all time highs. Pretty remarkable if you ask me but in today’s analysis I will focus on the Japanese Yen, which is part of three very interesting setups.
Let’s start what I believe is the best pair, the EURJPY. Here, we definitely have a positive sentiment, which originally started with the inverse head and shoulders pattern in Q4. After the price broke the neckline, we got a very nice upswing followed by a flat correction shaped like a rectangle. Yesterday, the price broke the upper line of the resistance and today, for the first time since August, it’s trading above the major horizontal resistance of 126.7. Once the price closes above this resistance, we’ll get a proper buy signal.
Now the AUDJPY, where the price is preparing for a major buy signal. First of all, the AUDJPY broke the crucial long-term down trendline, connecting lower highs since 2014. Furthermore, the price created an inverse head and shoulders pattern and the price is currently trying to break the neckline. A breakout from that resistance level would trigger a proper long-term buy signal.
Finally the USDJPY, a combination of two weak currencies, which leads to a sideways. Recently, the price bounced from a combination of dynamic and horizontal resistances. If the price stays below those resistances, there’s no buy signal. We will however see a buy signal if one of two scenarios plays out; either if the price manages to close the day above the two resistance levels, or a if there’s a breakout of the mid-term dynamic support connecting higher lows since mid December. As for now, we’ll wait, the signal will most likely come soon.
A new strain of the COVID virus, new lockdowns, and new travel restrictions are heavily influencing financial markets, and commodities in particular. Precious metals are higher due to the fact that they’re considered safe havens and the price of oil is dropping thanks to the new restrictions in travel and movement.
In today’s trading sniper video we’ll start with Gold, which recently broke and then tested the crucial horizontal level of 1850 USD/oz. The price being above this support level is the first step to a major buy signal. The other and final step would be a breakout of the upper line of the flag formation. The price bounced from it today proving that it’s a legitimate resistance. If the price closes the day above that line, it would give buyers the green light, and possibly lead the price above the 2000 USD/oz level.
Next is Silver, which has been moving according to technical analysis expectations over the past few weeks. First of all, the bearish correction bounced from the 38,2% Fibonacci line. Then, the price broke the down trendline, which gave a proper buy signal. Today, the price is testing the 23,6% Fibonacci, which has all the criteria to be considered a crucial resistance. If the price closes the day above it, it will be a proper buy signal.
Lastly let’s move to Brent, which started the new week poorly. The price is currently breaking the lower line of the channel up formation. If it closes the day below that line, it will be a legitimate sell signal with the potential target being at the 38,2% Fibonacci line. This Fibo line is additionally strengthened by the highs from August, which make it a very appealing target.
First day of December starts with strong bullish movements on major indices and commodities. Dollar, on the other hand, continues to decline further and it looks like the bottom is not in sight. In today’s trading sniper, I have three instruments from different worlds of trading: index, commodity and currency pair.
We start with Nasdaq, which in the past few days, broke two absolutely crucial resistances. The first one was the dynamic one, so the upper line of the symmetric triangle and the second one was the horizontal one so the 12200. Yesterday, buyers successfully tested that level as a closest support, which helps to lift the price further today. Sentiment is positive.
Now, we will move to Oil, where I would like to show you Brent Oil, although the situation on WTI is almost identical. What we have here is a flag formation, with a price breaking its upper line as we speak. Once buyers will manage to close the H4 candle above that resistance, we will get a proper buy signal.
I will finish this with one setup from the Forex world – AUDUSD. The price is enjoying an upswing coming from the weaker USD. Overnight, Aussie went slightly lower but just to test absolutely crucial horizontal support on the 0.734. Test was positive for the buyers, as the price bounced quite rapidly. With that rise, the sentiment is definitely positive, of course as long as we stay above the green area, as the breakout would give us a signal to go down.
Dollar starts the last Friday of the month with a negative sentiment. It is not a surprise of course as the whole month was negative from the very beginning till the end.
We will start today’s trading sniper with the Dollar Index as it will help us show you the general sentiment for the Greenback. DXY is in a negative territory after breaking absolutely crucial horizontal support on 92. With this breakout, the way towards new long-term lows are widely opened. This does not come as a surprise as we were expecting this scenario before the US Elections.
Now, let’s move to the major currency pair with the USD, EURUSD. Here the price successfully broke the major mid-term resistance and the psychological barrier on 1.19. We not only broke it but also defended it as a support, which adds additional confirmation. Buyers are winning and the sentiment is definitely positive.
We will finish with AUDUSD, which is also doing very well. In the short-term, the price escaped from the flag pattern and broke the major resistance on 0.737. In the longer-term, we escaped from the symmetric triangle pattern and we are inside of the channel up formation. The price is currently testing it’s upper line, which may be a good occasion for a correction but the bullish momentum is quite strong, which means the pair might just keep going higher and higher.
Seems that the beginning of this week is all about breakouts. We have important breakouts of crucial levels on major instruments. In this video, we will traditionally analyze three instruments but you can be sure that we picked the best ones!
Lets start with Gold, which currently is on the lowest levels since the middle of July. Today and yesterday’s candles look very negative and the reason for that is the breakout of a crucial horizontal support on 1850 USD/oz. This is definitely negative and brings us a proper sell signal.
Now we move on to indices, where on the other hand we have a positive sentiment. SP500 escaped from the symmetric triangle pattern present in the last two weeks. The breakout is to the upside, so it brings us a mid-term buy signal.
From New York, we move to London, where FTSE is having a similar situation. Here, the price also broke the upper line of the triangle and is aiming higher. Sentiment is positive and we should be aiming 6500 now, so the major resistance from June.
Today we have a quite unique trading sniper video as we will focus on commodities. The reason for this is that on metals and oil we are in very interesting spots that requires our attention.
First, let’s start with Gold, which after July’s hype is rather in a downtrend. Downtrend that has clearly established support and this support is the 1850 USD/oz. We tested it already in September and in November, twice. The last test was yesterday and it was very positive for the buyers. By very positive I mean that the price bounced from this level and managed to create a hammer on a daily chart. That is promising and as long as we stay above the 1850 USD/oz, we do not have a sell signal.
Now Silver, which in terms of technical situation is in an even better spot than gold as the price is further from the crucial support as we are in the middle of the symmetric triangle pattern. Once the price will break the upper line, we will have a buy signal and breaking the lower line of this formation, will bring us a signal to sell.
Now Brent Oil, which is creating a mid-term buy signal as we speak. In the longer-term , we are in a similar situation like in Silver as we are inside of the symmetric triangle pattern but in the short-term, the price just broke the dynamic resistance, which gives us a buy signal. The first target is on the upper line of the triangle and changes that we will get there are quite significant.
Who would have thought that after the vaccine news from Pfizer, attractions on the market will last only for a while. After the initial upswing, the market entered a sideways trend, which lets say…is a little bit boring. Worry no more though, we have it covered and we are presenting you three very promising trading setups on different types of instruments.
First, an index – German DAX. Here, the price managed to break the dynamic resistance connecting recent lower highs. That was very positive but after that, the price created a pennant formation, which basically is a flat correction. In theory, this should end with the breakout to the upside but buyers need to be cautious. The price breaking the lower line of this formation will be negative and can bring us a sell signal but this option is currently less likely to happen.
From indices we move to currencies, where we will analyze the Dollar Index. DXY is in a very important place – long term horizontal support on 92.2. We already tested it a few times but sellers are not giving up and pressure arrises. Price closing a day below 92.2 will be a proper, long-term sell signal.
From currencies, we move to commodities, where I would like to show you Platinum, the price is testing crucial dynamic resistance. Sentiment is positive, as the price already broke important horizontal resistance, on Monday. Price closing a day above the red line, will be a proper buy signal.
Markets are really quiet recently and that is why we will shift our focus towards the American Stocks, coming in right on time as Axiory have increased their product offering by introducing CFD stocks on MT4. This can significantly help you diversify your portfolio and take advantage of more trading opportunities.
Apple is testing the upper line of the symmetric triangle.
Home Depot locked in the sideways trend, waiting for a breakout.
McDonald’s defending the neckline of the H&S formation.
Netflix aiming for the lower line of the rectangle.