Welcome to this week’s Market Blast Technicals where we will look at Gold (XAUUSD), USDCAD, GBPCHF, the NASDAQ (US100), the Hang Seng (HK50) and the FTSE (UK100).

For the last few months we have been monitoring the progress of the indices, after the COVID-19 crash, using the 200 day Simple Moving Average.

The American indices, especially the NASDAQ, have have surpassed the barrier.

The Hang Seng Index has broken the 200 day SMA and is trending upward.

Keep an eye on this lower trend line and watch for a confirmation of the bounce.

If we look at Fibonacci, we see that the current level is just above the 50% level where we have seen support and resistance is 25000.

The FTSE 100 has yet to reach the 200 day SMA but keep in mind that with a stronger UK Pound, shares will fall.

However, we are watching this consolidation pattern which could be a falling wedge.

Also, using Fibonacci, we see the 38.2% level is a key line of support.

Speaking of GBP, we see a retreat from the current rally today and we note that GBPCHF finds support at the 61.8% Fibonacci level and the next level of resistance above is 1.224.

Looking at the daily chart on USDCAD we see key levels of support, pre-COVID, with the next level below at 1.295.

Price action on Gold is forming a familiar consolidation pattern so we will watch our trend lines for a break or a bounce.

Meanwhile, we can use a tool like the Stochastic Oscillator to time our entries  and exits for shorter moves.

That’s all for now.  Happy trading with Valutrades and we will see you next week.

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