Weekly Technical Analysis: Charts Of The Week - Saturday, Apr. 10

In this edition of "Charts of the Week", we will focus on the two major currency pairs – GBP/USD and USD/JPY, which have both been under pressure recently, as well as the outlook for USOIL and Copper. Two metals to keep an eye on are Gold and Platinum - with both on the verge of a major breakout to the upside.


The British Pound has been one of the top performing currencies in recent months, but a reversal of fortune is becoming more likely amid crowded GBP long positioning. The short squeeze sent the currency tumbling, and EUR/GBP is approaching a significant resistance level following a three-day winning streak. A clear break above this level would pave the way for a continuation of the recovery rally towards the 200 DMA around 0.8930. Given the broad USD weakness, traders are finding EUR/GBP are more interesting currency pair to play the Pound´s weakness.

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A fairly strong risk appetite doesn´t make the Japanese Yen the most attractive currency at the moment, but there is potential for a short squeeze due to extended positioning and the charts hinting at oversold conditions. USD/JPY failed to reach the 111.00 resistance level, and a break below the 23.6 % Fibonacci (January-March rally) seems increasingly likely. With negative momentum building, a continuation of the reversal towards 106.80 should not be ruled out. There, the currency pair is likely to find significant support and buyers will return in larger numbers.

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Following a stellar performance in 2020, Gold prices have been struggling lately. However, the outlook for Gold is looking a little bit brighter following a potential double bottom formation at $1680 support and a recovery rally that led to a test of the key $1756-64 resistance area. The double bottom is a charting pattern that is signaling a price reversal - and a potential bullish signal is given when the confirmation line is crossed to the upside. Should the precious metal manage to clear this major obstacle, a continuation of the rally towards $1850 (near the 61.8 % Fibonacci of the January-March decline and 200 DMA) appears likely.

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Disclaimer: The information is not to be construed as a recommendation; or an offer to buy or sell; or the solicitation of an offer to buy or sell any security, financial product, or instrument; ...

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