Technical Outlook: US Dollar, EUR & GBP Crosses, Gold & More
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Today, we started out by taking a look at the US Dollar Index (DXY), which is at a confluence of resistance. This puts the immediate bias to the downside. EURUSD, unsurprisingly, is trying to mount a rally from support. GBPUSD sunk into support after a nice rejection trade from over 12800, looking for a recovery bounce at the least.
We also looked at USDZAR, which is a typical ‘on-the-radar-sell’, but at this time we will need to be patient in getting another set-up. USDMXN is testing a trend-line, and could be of interest from the short-side soon.
While DXY is turning off resistance, gold is trying to turn up from trend-line support. The confluence of events in conjunction with the highly inverse one-month correlation of 82% suggests gold may see a lift here. With that, silver should follow despite not having support to lean on this time.
Crude oil continues to fall deeper into the hole, dropping below the May puke-day low yesterday. There is further risk of downside from here.
The DAX broke out of ascending wedge on Monday, but has since fallen back inside and trying to break the other side of the pattern. A confirmed break would be considered a bearish event. The S&P is wobbling, but still has yet to fall into a place where the path of least resistance is lower.
For full technical considerations, please see the video above…
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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.