Wednesday 28th August 2024: Technical Outlook and Review

Welcome to today’s comprehensive technical outlook and review. This analysis covers a variety of currency pairs, commodities, and indices, highlighting potential trading opportunities based on key technical indicators, market trends, and upcoming economic events. Use this guide to inform your trading decisions for the day.

Today’s Trading Signals

Asset	Potential Direction	Pivot	1st Support	1st Resistance
DXY (US Dollar Index) 📈	Buy	100.54	100.29	100.92
EUR/USD 📉	Sell	1.1194	1.1101	1.1251
EUR/JPY ⚖️	Neutral	N/A	159.37	164.05
EUR/GBP 📈	Buy	0.8417	0.8384	0.8457
GBP/USD 📉	Sell	1.3254	1.3135	1.3430
GBP/JPY ⚖️	Neutral	N/A	189.33	193.26
USD/CHF 📉	Sell	0.8443	0.8343	0.8533
USD/JPY 📈	Buy	143.71	141.75	146.93
USD/CAD 📉	Sell	1.3458	1.3370	1.3561
AUD/USD 📈	Buy	0.6798	0.6754	0.6859
NZD/USD 📈	Buy	0.6233	0.6162	0.6295
US30 (DJIA) 📈	Buy	41,156.81	40,602.31	42,014.15
DE40 (DAX) 📉	Sell	18,760.10	18,534.60	18,894.40
US500 (S&P 500) 📉	Sell	5,669.89	5,561.63	5,860.51
BTC/USD (Bitcoin) 📈	Buy	57,039.06	54,743.19	61,687.65
ETH/USD (Ethereum) 📈	Buy	2,289.04	2,044.47	2,523.64
WTI/USD (Oil) 📈	Buy	75.33	73.88	78.50
XAU/USD (Gold) 📉	Sell	2529.88	2473.30	2547.88

DXY (US Dollar Index)

Potential Direction: Bullish
Overall Momentum of the Chart: Bearish

The US Dollar Index (DXY) shows bearish momentum overall, but there is a possibility for a bullish bounce from the pivot level, aiming towards the first resistance.

• Pivot: 100.54 – Identified as a multi-swing low support, suggesting a strong level where the price has historically found support.
• 1st Support: 100.29 – This level is identified with a 161.80% Fibonacci Extension, suggesting where the price might find support during a decline.
• 1st Resistance: 100.92 – Marked as an overlap resistance, indicating a potential level where the price might face resistance during an upward move.

Technical Indicators Used: Fibonacci Extension, Overlap Resistance
Upcoming Economic Events: Fed’s Waller speech at 19:00 (High impact)

EUR/USD

Potential Direction: Bearish
Overall Momentum of the Chart: Bullish

Despite the bullish momentum, EUR/USD could experience a bearish reaction off the pivot level, potentially declining towards the first support.

• Pivot: 1.1194 – Identified as a multi-swing high resistance, indicating a level where the price has historically faced selling pressure.
• 1st Support: 1.1101 – Marked as a multi-swing low support and aligns with the 38.20% Fibonacci Retracement, suggesting a level where the price might find support.
• 1st Resistance: 1.1251 – Identified as a swing high resistance, indicating a level where the price might encounter resistance during an upward move.

Technical Indicators Used: Fibonacci Retracement, Swing High/Low
Upcoming Economic Events: Eurogroup Meeting (All Day), Consumer Confidence (Aug) at 09:45

EUR/JPY

Potential Direction: Neutral
Overall Momentum of the Chart: Neutral

EUR/JPY is currently in a neutral phase, with the potential to fluctuate between the first resistance and support levels.

• 1st Support: 159.37 – Identified as an overlap support, aligned with the 38.20% Fibonacci Retracement, indicating a potential area where the price could find support during a decline.
• 1st Resistance: 164.05 – Marked as an overlap resistance, suggesting a level where the price might face resistance if it attempts to rise.

Technical Indicators Used: Overlap Support/Resistance, Fibonacci Retracement
Upcoming Economic Events: ECB’s Lane speech at 12:15

EUR/GBP

Potential Direction: Bullish
Overall Momentum of the Chart: Bearish

Although the overall momentum is bearish, EUR/GBP may see a bullish bounce off the pivot, heading towards the first resistance level.

• Pivot: 0.8417 – Identified as an overlap support, indicating a potential area where the price might find support and reverse to the upside.
• 1st Support: 0.8384 – Marked as pullback support, suggesting a level where the price could stabilize during a downturn.
• 1st Resistance: 0.8457 – Identified as pullback resistance, indicating a potential area where upward movement might encounter selling pressure.

Technical Indicators Used: Overlap Support, Pullback Resistance
Upcoming Economic Events: Eurogroup Meeting (All Day), Consumer Confidence (Aug) at 09:45

GBP/USD

Potential Direction: Bearish
Overall Momentum of the Chart: Bullish

GBP/USD shows bullish momentum, but a bearish reaction is possible off the pivot level, potentially leading to a decline towards the first support.

• Pivot: 1.3254 – Identified as swing high resistance, which could act as a significant barrier to further upward movement, reinforced by the 161.80% Fibonacci Retracement level.
• 1st Support: 1.3135 – Marked as pullback support, indicating an area where the price might find stability after a decline.
• 1st Resistance: 1.3430 – Identified as pullback resistance, where the price could encounter selling pressure if it moves higher.

Technical Indicators Used: Swing High Resistance, Fibonacci Retracement
Upcoming Economic Events: BoE’s Mann speech at 15:15

GBP/JPY

Potential Direction: Neutral
Overall Momentum of the Chart: Neutral

The GBP/JPY is currently neutral, with potential fluctuations between the first support and resistance levels.

• 1st Support: 189.33 – Identified as an overlap support level, which could act as a stabilizing point for the price during a decline.
• 1st Resistance: 193.26 – Marked as swing high resistance, suggesting a potential area where the price might face selling pressure or reversal if it moves upward.

Technical Indicators Used: Overlap Support, Swing High Resistance
Upcoming Economic Events: None

USD/CHF

Potential Direction: Bearish
Overall Momentum of the Chart: Bearish

USD/CHF is showing bearish momentum with the price positioned below the bearish Ichimoku cloud, suggesting further downside potential.

• Pivot: 0.8443 – Identified as pullback resistance, indicating a potential area where selling pressure may resume.
• 1st Support: 0.8343 – Supported by the 127.20% Fibonacci Extension, suggesting a significant area where the price could find support during a decline.
• 1st Resistance: 0.8533 – An overlap resistance, which could act as a barrier if the price attempts to move upward.

Technical Indicators Used: Ichimoku Cloud, Fibonacci Extension, Overlap Resistance
Upcoming Economic Events: Fed’s Waller speech at 19:00

USD/JPY

Potential Direction: Bullish
Overall Momentum of the Chart: Bullish

USD/JPY is exhibiting bullish momentum with the potential to continue rising towards the first resistance level.

• Pivot: 143.71 – Identified as an overlap support level with a 78.60% Fibonacci Retracement, suggesting it as a strong area for the price to bounce upward.
• 1st Support: 141.75 – Swing low support, indicating a significant area where the price has found support in previous declines.
• 1st Resistance: 146.93 – Multi-swing high resistance, combined with a 61.80% Fibonacci Retracement, marking a strong area where the price could face selling pressure.

Technical Indicators Used: Overlap Support, Fibonacci Retracement, Swing Low/High
Upcoming Economic Events: Foreign Bond Investment and Foreign Investment in Japan Stocks at 02:50 (Thursday, August 29)

USD/CAD

Potential Direction: Bearish
Overall Momentum of the Chart: Bearish

USD/CAD has broken below the pivot level, indicating a bearish momentum with potential further declines towards the first support.

• Pivot: 1.3458 – Previously identified as a pullback support, which has now been broken due to strong bearish momentum.
• 1st Support: 1.3370 – Identified as a pullback support that aligns with a 161.8% Fibonacci extension, indicating a potential area where the price could find strong support.
• 1st Resistance: 1.3561 – Identified as a pullback resistance, indicating a potential area that could halt any further upward movement. The presence of the bearish Ichimoku Cloud adds further significance to the strength of this resistance zone.

Technical Indicators Used: Ichimoku Cloud, Fibonacci Extension, Pullback Resistance
Upcoming Economic Events: Current Account (Q2) at 15:30 (Thursday, August 29)

AUD/USD

Potential Direction: Bullish
Overall Momentum of the Chart: Bullish

AUD/USD has made a bullish break above the pivot level and could potentially rise towards the first resistance.

• Pivot: 0.6798 – Previously identified as a swing-high resistance, which has now been broken due to strong bullish momentum.
• 1st Support: 0.6754 – Identified as an overlap support, suggesting a potential area where the price has recently found support. The presence of the bullish Ichimoku Cloud adds further significance to the strength of this support zone.
• 1st Resistance: 0.6859 – Identified as a swing-high resistance that aligns close to a 78.6% Fibonacci projection, indicating a significant area that could halt further upward movement.

Technical Indicators Used: Ichimoku Cloud, Fibonacci Projection, Overlap Support
Upcoming Economic Events: Private Capital Expenditure (Q2) at 04:30 (Thursday, August 29)

NZD/USD

Potential Direction: Bullish
Overall Momentum of the Chart: Bullish

NZD/USD has shown bullish momentum, breaking above the pivot, and could potentially rise towards the first resistance.

• Pivot: 0.6233 – Previously identified as a pullback resistance, which has now been broken due to strong bullish momentum.
• 1st Support: 0.6162 – Identified as a pullback support, suggesting a potential area where the price could find support. The presence of the bullish Ichimoku Cloud adds further significance to the strength of this support zone.
• 1st Resistance: 0.6295 – Identified as an overlap resistance that aligns close to a 78.6% Fibonacci projection, indicating a significant area that could halt further upward movement.

Technical Indicators Used: Ichimoku Cloud, Fibonacci Projection, Pullback Resistance
Upcoming Economic Events: ANZ Activity Outlook and ANZ Business Confidence (Aug) at 04:00 (Thursday, August 29)

US30 (DJIA)

Potential Direction: Bullish
Overall Momentum of the Chart: Bullish

The US30 shows a bullish outlook, with the potential for a rebound from the pivot level towards the first resistance.

• Pivot: 41,156.81 – Identified as a pullback resistance, suggesting a potential area where buying interests could pick up to resume the uptrend.
• 1st Support: 40,602.31 – Identified as a pullback support that aligns close to a 23.6% Fibonacci retracement, suggesting an area where price has found support recently. The presence of the bullish Ichimoku Cloud adds further significance to the strength of this support zone.
• 1st Resistance: 42,014.15 – Identified as a resistance that aligns with a 127.2% Fibonacci extension, indicating a significant area that could halt further upward movement.

Technical Indicators Used: Ichimoku Cloud, Fibonacci Extension, Pullback Support/Resistance
Upcoming Economic Events: EIA Crude Oil Stocks Change (Aug 23) at 17:30

DE40 (DAX)

Potential Direction: Bearish
Overall Momentum of the Chart: Bullish

DE40 is approaching a pivot point and may see a bearish reversal, pulling back towards the first support level.

• Pivot: 18,760.10 – Identified as a swing-high resistance, suggesting a potential area where selling pressures could intensify.
• 1st Support: 18,534.60 – Identified as an overlap support, indicating a potential area where price could find support. The presence of the bullish Ichimoku Cloud adds further significance to the strength of this support zone.
• 1st Resistance: 18,894.40 – Identified as a swing-high resistance that aligns close to the all-time high, indicating a significant area that could halt further upward movement.

Technical Indicators Used: Swing High Resistance, Overlap Support, Ichimoku Cloud
Upcoming Economic Events: Eurogroup Meeting (All Day)

US500 (S&P 500)

Potential Direction: Bearish
Overall Momentum of the Chart: Bullish

US500 is showing a bullish trend but may encounter a bearish reversal near the pivot, potentially moving towards the first support.

• Pivot: 5,669.89 – Identified as a swing-high resistance that aligns close to a 127.2% Fibonacci extension, suggesting a potential area where selling pressures could intensify.
• 1st Support: 5,561.63 – Identified as an overlap support, suggesting a potential area where price could find support. The presence of the bullish Ichimoku Cloud adds further significance to the strength of this support zone.
• 1st Resistance: 5,860.51 – Identified as a resistance that aligns with a 161.8% Fibonacci extension, suggesting a critical area that could halt further upward movement.

Technical Indicators Used: Swing High Resistance, Fibonacci Extension, Ichimoku Cloud
Upcoming Economic Events: Fed’s Bostic speech at 22:30 (Thursday, August 29)

BTC/USD (Bitcoin)

Potential Direction: Bullish
Overall Momentum of the Chart: Bearish

Bitcoin is currently falling towards the pivot and could potentially make a bullish bounce off this level to rise towards the first resistance.

• Pivot: 57,039.06 – Identified as a pullback support that aligns with a 50% Fibonacci retracement, indicating a potential area where buying interests could pick up to stage a minor rebound.
• 1st Support: 54,743.19 – Identified as a pullback support that aligns close to a 61.8% Fibonacci retracement indicating a significant area where price has found support in the past.
• 1st Resistance: 61,687.65 – Identified as an overlap resistance, indicating a potential barrier that could halt further upward movement.

Technical Indicators Used: Fibonacci Retracement, Overlap Resistance, Pullback Support
Upcoming Economic Events: None

ETH/USD (Ethereum)

Potential Direction: Bullish
Overall Momentum of the Chart: Bearish

Ethereum is falling towards the pivot and could potentially make a bullish bounce off this level to rise towards the first resistance.

• Pivot: 2,289.04 – Identified as a pullback support that aligns close to a 61.8% Fibonacci retracement, indicating a potential area where buying interests could pick up to stage a minor rebound.
• 1st Support: 2,044.47 – Identified as a swing-low support, indicating a potential area where price could find support.
• 1st Resistance: 2,523.64 – Identified as an overlap resistance, indicating a historical barrier where that could halt further upward movement.

Technical Indicators Used: Fibonacci Retracement, Swing Low Support, Overlap Resistance
Upcoming Economic Events: None

WTI/USD (Oil)

Potential Direction: Bullish
Overall Momentum of the Chart: Bearish

Oil prices could fall towards the pivot and potentially make a bullish bounce off this level to rise towards the first resistance.

• Pivot: 75.33 – Identified as an overlap support that aligns close to a 50% Fibonacci retracement, suggesting a potential area where buying interests could pick up to stage a rebound.
• 1st Support: 73.88 – Identified as a pullback support that aligns with 78.6% Fibonacci retracement, indicating a potential area where price could find support.
• 1st Resistance: 78.50 – Identified as a pullback resistance, indicating a potential barrier that could halt further upward movement.

Technical Indicators Used: Fibonacci Retracement, Overlap Support, Pullback Resistance
Upcoming Economic Events: EIA Crude Oil Stocks Change (Aug 23) at 17:30

XAU/USD (Gold)

Potential Direction: Bearish
Overall Momentum of the Chart: Bearish

Gold could potentially make a bearish reaction off the pivot level and drop towards the first support.

• Pivot: 2529.88 – Identified as a multi-swing high resistance level, suggesting a strong area where the price might face selling pressure.
• 1st Support: 2473.30 – Pullback support, indicating a significant area where the price could find support during a decline.
• 1st Resistance: 2547.88 – Marked by a 127.20% Fibonacci Extension, indicating a potential area where the price might encounter resistance.

Technical Indicators Used: Fibonacci Extension, Multi-swing High Resistance, Pullback Support
Upcoming Economic Events: None