Technical Outlook - DXY, GBP-pairs, Gold Price, FTSE 100 & More
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In today’s webinar, we focused primarily on FX, with emphasis on the surge in sterling. GBPUSD has broken the neckline of a big-picture bottoming pattern, and looks ready to make a move towards 13400/3500. But we need to see it cross over ~12900 with conviction as there is resistance from several months back. EURGBP is one of the more compelling looking cross-rates we looked at, with it set it appears on the verge of a big move lower. While it’s a macro set-up, there will still be opportunities along the way on the shorter-term time-frames. GBPJPY and GBPCAD also have our attention.
The DXY is trading at trend-line support and just above a thicket of other support lines. As such, it is at risk of a bounce in the near-term, but a break below all support levels could make for a big concerted move lower in the dollar.
USDZAR tested the long-term (2011) trend-line and reversed last week. The reversal now has us on the hunt for set-ups on the daily chart moving forward.
Gold is up against the 2011 trend-line, which has us cautious on longs, but not necessarily bullish on shorts. Silver is pulling back from resistance but has some intermediate-term trend support close at hand. We’re in a holding pattern in precious metals for the most part. The same goes for crude oil.
European equity indices took a shot yesterday and look headed lower. We ran through possible points of interest on the DAX, CAC 40, and FTSE 100. The S&P 500 is still poorly postured and as long as it stays below the trend-line off record highs the view remains bearish, with another lower low towards 2300 anticipated.
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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.