Top 3 charts of the week: FRA40, US500, AUDUSD (15.02.2023)

FRA40

Let's start today's analysis with the FRA40 chart. Looking at the weekly time frame, we can see that the French index is approaching its all-time high at 7400 pts, however hidden bearish divergence appeared on the Momentum indicator, which indicates that the recent upward rally may be losing steam. If sellers manage to regain control, downward impulse may be launched towards support at 6515 pts which coincides with 23.6% Fibonacci retracement of the upward wave launched in March 2020.

FRA40, W1 interval. Source: xStation5

US500

Taking a look at  US500 chart on the daily time frame, we can see that the index is still struggling to break above key resistance at 4175 pts, which coincides with 23.6% Fibonacci retracement of the upward wave launched in March 2020 and upper limit of the 1:1 structure. Also medium-term 50-day SMA (green line) crossed above the long-term 200-day SMA (red line). This formed a bullish ‘golden cross’ formation, which can at times precede a move higher. Nevertheless as long as price sits below the aforementioned resistance, another downward wave may be launched towards crucial support at 4000 pts. 

US500, D1 interval. Source: xStation5

AUDUSD

Finally let's take a look at AUDUSD pair. On the H4 interval, we can see that price continue to oscillate around key technical support zone around 0.6870 which is marked with the lower limit of 1:1 structure, 61.8% Fibonacci retracement of the last upward wave as well as previous price reactions. Following a local rebound, the aforementioned support is being tested once again. According to the Overbalance methodology, as long as the price sits above the aforementioned support, one should expect the price to continue the upward move. However if sellers manage to break lower, downward correction may deepen towards next support at 0.6790.

AUDUSD, H4 interval. Source: xStation5