Technical Outlook: DXY, Gold/Silver, S&P 500, and More
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The US Dollar Index (DXY) continues to trade around very critical long-term support in the constructs of a shorter-term downtrend. It’s getting close to the point where the dollar needs to make up its mind. The series of lower lows and lower highs throughout the course of the month into support could lead to a strong move lower if support gives way in the 99s. We looked at how the overall dollar bias could impact EUR/USD, GBP/USD, USD/JPY and a few other majors.
Crude oil we only touched on briefly, as it’s volatility from day-to-day doesn’t offer much in the way of signaling at the immediate moment. With that said, though, we still maintain that a top could be forming bigger picture, from both a charting standpoint and market positioning perspective.
The S&P 500 still has room to go on the upside after finally breaking out, looking to ~2320 as a potential target. The DAX is challenging key levels from 2015, while the CAC 40, though, isn’t acting so well, but still hanging onto trend support at the moment.
For full considerations, please see the video above.
---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.