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Daily Technical Round-up: Indices booming

Michael Baker, Friday, 5 July 2019

Technical Analysis

GBP/USD

Pivot: 1.2580

Scenario 1: A glimpse of the four-hour chart and the last 16 bars shows you how light volatility is in cable currently. Levels remain the same. 1.2558 forming a very shot-term support. Below is the yearly lows at 1.2506. Any further then it's the 12 Dec low at 1.2477 and then 3 Jan low at 1.2434. 1.2367/1.2300 saw quite a bit of action back in 2017.

Scenario 2: Short-term push above 1.2591/2600 could start given us a platform to build for 1.2748/.2814. Before then there may be a short resistance at 1.2641/60. Any low we make, be sure to get your fib on if we start to turnaround.

Chart: Nonfarm payrolls today, expect volatility around 13:30. Daily chart chart showing how weak sterling is, we may push down to the 2018 lows if weakness continues. 

5 GBP

EUR/USD

Pivot: 1.1284

Scenario 1: Pushing down towards the 50% at 1.1260 remains untouched with the 61.8% at 1.1224. A potential trend support at 1.1234 which has been holding since 23 May.

Scenario 2: Above 1.1347 it's possible we resume the move for the major 23.6% (Feb 2018 to 2019 low) at 1.1451 which sits on the 20 March high. Above here then it's the 1.15 level which has seen some strong pullbacks when tested.

Chart: Daily chart showing gains from the 20 & 21 June unwinding. Trend support and 50-day SMA not too far off. 

5 EUR

Germany 30

Pivot: 12,636

Scenario 1: Yesterday's action reflected the lower volumes going through due to US Independence Day. The momentum is to the upside, trend channel on four-hour is valid with multiple touches either side. 12,785 is the top of the channel and a breakout we look for 12,869/952.

Scenario 2: Rapid buying between 12,590/62, possible we may give this back if we get back down. 12,501/476 holding the weeks trading and the gap from last week is at 12,403. Trading is some way above the weekly pivot at 12,329.

Chart: Four-hour trend channel and market gap the main technical areas in focus.

5 Dow

Wall Street

Pivot: 26,978

Scenario 1: Quiet yesterday due to the US holiday and today with non-farms we may see participants taking a long weekend. Markets hovering around the October 2018 high. Bulls looking for markets not to give to much ground back and continue building on recent strength.

Scenario 2: A push back below 26,905/804 may put pressure on the buyers. Weekly pivot holding lows since Monday at 26,629. Gap left from last Friday at 26,585. 26,408 is a support which has held since 18 June.

Chart: Daily chart showing the new all time-highs. We will start to use this platform for a much longer-term push? 

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