Top charts for this week

Summary:

  • SP500 (US500) stalls ahead of the resistance
  • Silver has been hit the most compared to other precious metals
  • USDPLN comes back to the lower bound of the bearish channel

The start to this week has been mixed for equity markets around the world. On the one hand, bulls seem to hold an advantage benefiting from upbeat revelations regardings US-China trade negotiations. On the other hand, the recent rises have not been so impressive and major indices have approached important technical levels. For instance, take a look at the US SP500 (US500) which failed to break above 2820 points. This level is underpinned by the local highs from October and November 2018. In addition, the level is also supported by the 78.6% retracement of the latest bearish wave from the past year. All of that suggests that bears could try to take control in the incoming days. The first support should be the 200DMA (2750 points) followed by 2680 points.

Source: xStation5

Silver is a good example of the instrument which has approached the important technical level of late. The latest silver’s underperformance could be tied to a sell-off in gold prices (a result of rising yields in the US). Note that the white has been hurt the most compared to other precious metals. Technically silver prices have fallen toward the upper bound of the latest consolidation. The mentioned upper bound could act like a support for bulls. Additionally, silver prices are underpinned by the 100DMA as well as the 50% retracement. Given the fact that silver prices have settled down recently one may hope for a rebound.

Source: xStation5

In turn, the USDPLN seems to deserve more attention when we look through the currency market. Note that the zloty underperformed during the first half of February but it managed to stop falling in the two final weeks of the past month. While the pair has corrected since then, it needs to be noticed that we are currently moving above the bearish channel. On the other hand, keep in mind that the potential stemming from the left channel has been already realized (the red supply zone). Nevertheless, if other EM currencies come under downside pressure once again, it is likely that the zloty could begin losing ground anew. The possible target for the USDPLN under a bullish scenario could be set at 3.92.

Source: xStation5

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