29 March 2017 at 4:58 GMT
- USD index attempts to retest Head and Shoulders neckline
- EURUSD is back below 1.0830
- A gold correction would tie in with an upside move in US dollar index
- A close above 111.6 for USDJPY would open up a bull case
- Symmetrical triangle patterns in S&P500 and FTSE suggest more legs in rally
By Edmund Liu
US dollar index
We have a classic Head & Shoulders top on the USD index, but it seems that the index is not content to follow the rules of technical analysis,
as it attempts to retest the Head & Shoulders neckline.
USD index daily chart
We are back below 1.0830, which was the resistance levels in Dec 2016 and Feb 2017. We require further confirmation to see if the EURUSD retracement is temporary.
EURUSD daily chart
Gold is encountering resistance at the 200-day moving average, as well as downward sloping trendline resistance from 2016. A correction in gold would tie in nicely with an upside move in the US dollar index.
XAUUSD daily chart
appears to be retesting the horizontal support line of its Descending Triangle, a technically bearish pattern. A close above 111.6, as well as a close above the Ichimoko Clouds at 115, would open up a bull case for the USDJPY.
USDJPY daily chart
With an upside reversal of risk trends last week, the DAX
has reclaimed the rising wedge, suggesting that high can go higher.
DAX daily chart
New highs on the CAC
, a breakout of the rising wedge with a close above 5075 today would open up the bull case for equities.
CAC daily chart
S&P500 and FTSE
Symmetrical triangle patterns in the S&P500 and FTSE
suggest there are still legs in the equity rally.
S&P500 and FTSE daily charts
Light Sweet Crude Oil
Crude is currently testing the 200-day simple moving average (SMA). A daily close above could just be the catalyst for a crude oil rally, as the RSI indicator suggests that momentum is oversold.
Light sweet crude daily chart
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– Edited by Susan McDonald