Charts/Set-ups: USD-pairs, EURAUD, Gold/Silver, and Equity Indices (Webinar)
In today’s webinar, we discussed the tank in EURUSD following the outcome of the ECB meeting yesterday, and its potential implications moving forward as critical support levels are back under siege. The DXY, which is largely dominated by the euro, held an angle of support running back a few months. The short-term time-frames provide us with a potentially bullish technical structure to operate off of heading into next week.
AUDUSD and NZDUSD have been in recovery mode, but if broad dollar strength reasserts itself in full we look for these to undercut short-term trend-lines and head lower. USDJPY is trading at a level of minor resistance, but looks poised to head to above 116 where more significant resistance lies. The spike and reverse in EURAUD once again has the cross pressing on support tested several times in recent weeks, a break below opens the door up for another leg lower.
Gold remains very weak within the confines of a short-term downward channel. As long as it stays within, the path of least resistance remains down. Silver has been stubbornly strong, but the low 17s are so far capping any attempt to push higher. Watch for sellers to step in on renewed dollar strength, gold weakness.
Crude oil is trading near some pretty good medium-term resistance around the 52 handle. With resistance at hand, sellers have the edge for now, but a pullback from here into support might offer a chance to pick it up on a dip.
Global stock markets are strong. The DAX surged massively this week and broke out above a multi-month barrier. The anticipation is for a dip or consolidation period to be bought, targeting 11400+ on another leg up. U.S. indices are also showing some serious strength for the most part. The Nasdaq 100 remains the laggard, but the S&P 500, Dow, and Russell 2k are powering higher in impressive fashion, and expected to continue to hold a bid through year-end. The Nikkei is not one to messed with from the short-side at this time, either. Dips likely to be bought.
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---Written by Paul Robinson, Market Analyst
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.