Ready to catch big moves this week?
Here are the long-term areas of interest you should look at on EUR/JPY, AUD/CAD and silver.
Spot Silver (XAG/USD): Weekly
I don’t usually watch silver prices but when I do, it’s because the commodity is sitting right on a long-term area of interest!As you can see from the weekly chart above, silver is hanging out at the former resistance zone between $18-20 and seems to be attempting a breakdown.
After all, the precious metal already lost traction on its earlier bounce then hit a ceiling at the 200 SMA dynamic inflection point. If bearish vibes stay on, silver might even tumble to the next floor near $14!
Technical indicators are suggesting that there’s still a chance for bulls to come through, as Stochastic is hovering around the oversold region. At the same time, the 100 SMA is above the 200 SMA to reflect buying pressure.
Brace yourselves for a potential reversal on this one!
EUR/JPY appears to be completing a head and shoulders pattern on its daily time frame, as the pair is finding resistance at the 140.00 handle.
Another leg lower from here could form the second shoulder and spur a test of the neckline around 135.00-136.00. If bearish pressure is strong enough to trigger a breakdown, we might just see EUR/JPY slide down by the same height as the chart pattern.
Technical signals are looking mixed, though. The 100 SMA is still above the 200 SMA to reflect upside momentum while Stochastic looks ready to turn lower from the overbought region.
Better keep an eye out for confirmation from those reversal candlesticks forming at current levels if you’re shorting.
Now here’s a reversal pattern that looks ready to play out!
AUD/CAD seems done with its climb, as the pair completed a head and shoulders formation on its 4-hour time frame.Price is has even closed below the neckline around the .8950 minor psychological mark to hint that sellers have the upper hand.
In that case, AUD/CAD could slide by the same height as the chart formation, which spans roughly 200 pips.
Think we’ll see a drop to the .8700 levels next?
Just be careful when shorting since the 100 SMA is still above the 200 SMA, and Stochastic is signaling oversold conditions. Then again, the gap between the moving averages is narrowing to show that a bearish crossover is in the cards.