Trading Outlook: USD, Cross-rates, Gold/Silver, DAX & S&P 500
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Today, we took a look at several asset classes, ranging from FX to commodities to equity indices. The US dollar experienced a sharp reversal the other day and looks headed lower in the near-term, but will it be broad in nature? GBPUSD looks heavy, a daily close below 12400 would be big. On the flip-side, EURUSD (which is ~58% of the DXY index) looks like it could head higher. Then there is AUDUSD, which has been very strong now postured precariously. We also took a look at several cross-rates – EURAUD, GBPAUD, GBPJPY, EURJPY, USDZAR, and a few others as well.
Gold and silver continue to look poised for higher prices, and a dollar sell-off will only go to further the cause on the upside. We’re still looking for 19 in silver, gold no specific targets at this time.
Crude oil is a choppy mess, but with a generally contracting range we could soon see a big picture move development out of a wedge. We patiently await from afar for clarity to present itself.
The Nikkei 225 continues to chop, looking as though it wants to further consolidate before making a move. The DAX is pulling back at the moment, but still remains generally constructive for now. The FTSE still has eyes for the Jan highs. U.S. indices are amid a blow-off stage which could continue before seeing a meaningful pullback.
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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.