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USDJPY in Downtrend. Dow Jones Industrial Average Consolidating.


Welcome to this week’s Market Blast Technicals where we will look at USDCAD, CADJPY, USDJPY, Gold (XAUUSD), WTI (USOil) and the Dow Jones Industrial Average (US30).


A familiar consolidation pattern has formed on the DJIA with a rising wedge.Screenshot 2020-12-08 at 11.08.32

This is often a bearish pattern but we see the stochastic oscillator showing us an “Oversold” signal but watch the fundamentals on US Stimulus, vaccines and lockdowns.Screenshot 2020-12-08 at 11.08.47

Last week we looked at the lower trend line on WTI and price moved up to over $46 per barrel and has retreated to a new lower trend line but we will wait for an “Oversold” signal on our Stochastic Oscillator.

If we look at the Daily chart on our Post-COVID Fibonacci, we see that we have finally broken the 61.8% resistance level and, depending on demand and OPEC, this may be support in the near future.Screenshot 2020-12-08 at 11.09.00

Gold has broken above the 200 Day Moving Average but is still showing us lower lows on the Daily chart and we will wait for a downturn on the Stochastic Oscillator from its “Overbought” status.Screenshot 2020-12-08 at 11.09.16

We see on the USDJPY Daily chart that the downtrend continues and, if we zoom out to the 4-hour chart, we see this important consolidation pattern in a Symmetrical Pennant.

The Canadian Dollar is getting stronger against all other currencies.Screenshot 2020-12-08 at 11.09.29

Of course, the slowly increasing price of WTI is helping the Canadian dollar.

Keep an eye on CADJPY where we see on the Daily chart, a key level of resistance.

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

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The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice. If such information is acted upon by you then this should be solely at your discretion and Valutrades will not be held accountable in any way.