Technical Analysis Outlook - September 1- 5th!

A technical analysis overview on the following assets:

  • USDJPY

  • Gold spot

  • GBPUSD

  • Dow Jones (US30)


USDJPY Daily Chart


Corrective bearish pattern still ongoing with multiple tests of 104.50 critical support. Present trading range 104.50-107.00.

USDJPY 4H Chart


Short-term trading opportunities on the sell-side as long a below 106.30 resistance. If stopped out, the market could retest 107.68, which is the last line of defense from sellers.

XAUSD (Gold) 4H Chart


Gold remains bullish, however it is spending some time in a corrective pattern. The FED's comments last week, theoretically help Gold prices stay afloat and negatively impact the USD. As it stands, Gold looks like it is morphing into a triangle formation with the range being 1990-1904.


If during this week buyers fail to push above 1990 then we will expect another drop towards the lower-trendline for sub-wave "E" to terminate and then decide from there.

GBPUSD Daily Chart


The Cable is pushing though the last sub-wave towards new highs in order to complete a 5-wave structure with target at 1.3500 which is a key resistance point from the end of 2019.

GBPUSD 4H Chart


The micro structure going into the first week of September suggests bullish momentum as long as above 1.3230 with target 1.3400 then pause a bit and finally finish it off towards 1.3500.

US30 - Dow Jones (CFD) Daily Chart


The US indices have been pushing towards daily highs each week and such strength is mostly due to the FED's monetary policy and printing of money to support the pandemic economic effects in the US economy. Such strong influence by the FED may turn out to be quite troubling in the next 3 months.


We are tracking a possible B-wave towards 100% extension around 29,500 for a top and then reversal as projected in the following chart, however, we suggest not to keep short positions above 29,870 mark.

The above is only a preliminary analysis on the market and, if need be, we always change according to price action and incoming market information. Most of the times, market swings around the levels mentioned above, however, a trader should always practice a flexible mind and adjust to changing trading environment.


If you want a trading plan on other markets then don't hesitate to contact us.

Until the next time, trade well!

 

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