Top three charts of the week: EURUSD, US100, Sugar

EURUSD

Let’s start today’s analysis with a look at the major currency pair. Looking at the daily time frame, one can see that EURUSD is trading higher following a break above the neckline of an inverse head and shoulders formation. According to classic technical analysis, the upward move may extend towards the upper limit of the blue rectangle which marks the potential range of a breakout from the pattern (1.1330). On the other hand, should we see a correction, the 1.1140 area, that was broken yesterday,should now act as a nearest support. However, sentiment remains bullish and continuation of the upward move is more probable. 

EURUSD D1 interval. Source: xStation5

Sugar

Sugar price is trying to recover after recent declines. Looking at the daily chart, it looks like there is a chance to draw a bigger upward correction. Looking at H4 interval, one can see that a price broke above the neckline of an inverse head and shoulders pattern and trend reversal may be looming. First attempt of breaking above failed in May but the commodity made another try after finding support at the lower limit of the local market geometry. In addition, the price managed to stay above the 43-period moving average, which previously also acted as a resistance and a support. The nearest resistance to watch lies at 11.50, where highs from March are located. 

Sugar H4 interval. Source: xStation5

US100

Last but not least, let’s look at the American stock market index of tech companies, where we can see a continuation of an upward trend. US100 is trading near its all time highs, meaning that it has almost completely recovered from a panic sell-off that took place in February-March. Trend remains upward and there aren't any bearish signals on the chart now. The nearest resistance to watch is the 9750 pts area, but one should be aware that clearing this hurdle could trigger a bigger upward move. Stop loss orders are likely to be placed above this handle so a break higher could activated those and magnify upward move. On the other hand, it looks like a perfect place to start a downward correction. Nevertheless, as long as the pierce sits above 9,100 pts, the trend remains upward. A break below the 20-period moving average may be the first hint of weakness.

US100 D1 interval. Source: xStation5