Danny’s Technical Thoughts ~ Friday February 5th

Let’s dive in and take a look at some key charts and technical levels ahead of today’s US employment report.

EUR/USD

Looking at the EUR/USD daily chart we can see that a bearish Head and Shoulders top pattern formed and that price has fallen below the neckline at 1.2055. In addition, price fell below the key psych level of 1.20. The 200 period SMA lies below, currently around 1.1691.

GBP/USD

Cable remains in a strong uptrend on the daily chart. Bulls are eyeing the well defined resistance level of 1.3760. A break through this level would embolden them and bring the key psych level of 1.40 into the picture.

USD/CHF

So in the Swissie, we see the opposite of what’s going on in EUR/USD. A Head and Shoulders bottom pattern formed, and price has broken out above the neckline at 0.8922. The 200 period SMA lies above, currently at 0.9196, representing potential resistance.

Gold

Looking at the daily chart above, we can see that gold has been in a steady uptrend since January of 2019, when a golden cross took place (50 SMA crossing above the 200). However, the moving averages have converged again – suggesting that a major change in trend may be imminent. The 50 SMA is close to potentially crossing below the 200 SMA, which would form a bearish death cross pattern.