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The Pattern Pulse – 9 May 2024

Forex: NZD/USD Responding from AB=CD Resistance Daily Timeframe – Since the beginning of the year, the New Zealand dollar (NZD) has been on the ropes against the US dollar (USD), chalking up a series of lower lows and lower highs. The recent pullback from lows of $0.5852 has penciled in an ‘alternate’ AB=CD bearish formation at $0.6042, marked by the 1.272% Fibonacci projection ratio. With price having already responded to the pattern’s limit, common downside support targets are formed from the 38.2% and 61.8% Fibonacci retracement ratios derived from legs A-D of the pattern, which in this case are $0.5973 and $0.5927, respectively.

Commodities: Coffee Futures Displaying Support Ahead of Trendline Confluence Daily Timeframe – Coffee futures are down -7.3% MTD, with the move pulling price action to within striking distance of an interesting combination of trendline support around 190.79, which may offer buyers a platform to work with. As evident from the daily chart, we have trendline support taken from the low of 143.40 and a trendline resistance-turned-potential support drawn from the high of 202.85.

Equities: S&P 500 within Reach of All-Time Highs Daily Timeframe – Following a rebound from the 5,000 level in April, price action on the daily timeframe of the S&P 500 is now comfortably navigating space north of the 50-day simple moving average (SMA) and is within reach of retesting all-time highs of 5,264. The caveat to follow-through buying is the Relative Strength Index (RSI) testing trendline resistance, extended from the high of 82.18.

Cryptocurrency: LTC/USD Eyeing Long-Term Double-Top Completion? Weekly Timeframe – Longer-term price action for Litecoin (LTC) versus the US dollar (USD) is on the verge of challenging trendline support, extended from the low of $40.18. With price action failing to print any meaningful highs following the previous test of trendline support, a break below the trendline support could be seen and may serve as an early cue for completing a double-top pattern from around $113.80. The neckline for the double-top pattern resides just below at $54.61.

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Publication date:

2024-05-09 13:19:06 (GMT)

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