The Pattern Pulse – 13 February 2025

Daily Timeframe:

Following a bottom of US$1.0178 (onA 13 January) and a subsequent higher low of US$1.0211, resistance at US$1.0610-US$1.0597 calls for attention. However, given the neighbouring resistance further north at US$1.0610-US$1.0597, the EUR/USD (euro versus the US dollar) could whipsaw through buy stops above US$1.0610-US$1.0597 and provide liquidity for traders to fade US$1.0610-US$1.0597.

Commodities: Resistance and Possible Negative Divergence for Gold
Monthly Timeframe:

Up 4.2% this month, spot gold (XAU/USD) recently pencilled in a fresh all-time peak of US$2,942 and shook hands with a 1.272% Fibonacci projection ratio of US$2,931. Interestingly, alongside this resistance, the Relative Strength Index has welcomed resistance between 87.31 and 82.20 – an area that has been in play since 2006 – and could be poised to chalk up negative divergence.

Equities: DOW 30 Support Eyed
Daily Timeframe:

Price action on the Dow Jones Industrial Average (DOW 30) is trading just north of support between 43,445 and 43,834. This area is made up of a 1.272% Fibonacci projection ratio (‘alternate’ AB=CD support), a 50% retracement ratio, a 100% projection ratio (equal AB=CD support), a 38.2% Fibonacci retracement ratio, a 50-day simple moving average, and the lower Bollinger Band (set to two standard deviations).

Along with the Index trading just off all-time highs of 45,073, should price test the current area of support, buyers may enter the fray and attempt to target higher levels.

Cryptocurrency: Completed AB=CD Pattern for DOG/USD
Weekly Timeframe:

Price action on the weekly timeframe of DOG/USD (Dogecoin versus the US dollar) recently touched gloves with an equal AB=CD support pattern at US$0.21452, a base complemented by a 1.27% Fibonacci extension ratio and a 61.8% Fibonacci retracement ratio. Traders long the pair tend to take aim at the 38.2% and 61.8% Fibonacci retracement ratios derived from between legs A and D at US$0.29907 and US$0.36312, respectively.