EUR/USD, USD Index, Gold Charts & More
- EUR/USD trying to hold a rally
- DXY trying to come off of support and reassert itself
- Gold remains rangebound but positioned positively so far
The Euro is up against a long-term trend-line and trying to hold onto the rally but can it do so? It has failed within a week or so each time it has posted any kind of rally since early 2018. If it can maintain here then it could perhaps break that pattern, but if it rolls lower in the next few days then that sequence of failed rallies likely continues.
EUR/USD Daily Chart (trying to hold rally)
The US Dollar Index is trying to hold the 2018 trend-line, and if it can it may reassert the trend higher in place over the recent years. A break below 95.72 will start to break the bullish bias and could usher in much lower prices. This is of course largely Euro dependent as the single-currency accounts for roughly 57% of the index.
US Dollar Index (DXY) Daily Chart (trend-line support)
Gold continues to venture sideways in what is turning out to be a nice consolidation pattern. It has been two months since the congestion began, but could continue for a few weeks longer. However, the pattern is developed enough that a breakout from here could be sustainable. As long as price stays above 1658 on a closing basis then the consolidation remains valid. A breakout of 1765 will likely lead to an important test of the three peaks in 2011/12 right around 1800.
Gold Daily Chart (consolidating nicely)
For all the charts we looked at, check out the video above…
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---Written by Paul Robinson, Market Analyst
You can follow Paul on Twitter at @PaulRobinsonFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.