Weekly Technical Forecast: A EURUSD Reversal, USDJPY Break and S&P 500 Near Record, But Momentum?
There were a range of impressive technical moves this past week across the markets. The EURUSD reversed soundly from its heavy 1.1200 support, crude oil broke above another hefty resistance around 63.50 and the S&P 500 inched ever closer to its record highs. These are significant staging moves, but they are far from a commitment. Will we find momentum to supplant the tentative breaks and reversals already secured?
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Is the Australian Dollar starting to rekindle its correlation to general risk trends or perhaps this climb is self-motivated? With tentative bullish breaks being put in, conviction should be a technical trader’s primary focus.
Sterling remains a mixed bag against three other majors but continues to trade with a Soft Brexit outcome priced in. Technicals remain supportive but any fundamental Brexit shift could ramp up volatility and break current support and resistance levels.
The US Dollar remains mired in uncertainty as it continues to build a broad ascending wedge; top and bottom-side levels to pay attention to.
Gold is virtually unchanged on the week as price trades into monthly open resistance. These are the levels that matter on the XAUUSD weekly chart.
Don’t look now, but the Euro is appreciating, and the bears are fighting. Despite the CFTC data and IG Client Sentiment showing an increasing short picture, traders should watch the price patterns for a potential price increase on a position unwind.
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