Trading Outlook: USD, Cross-rates, Gold Price & More
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We first took a look at the bounce unfolding in the DXY, which at first-look appears to be corrective in nature. EURUSD is pulling back towards support, it will be important it doesn’t drop below if that view is to hold. GBPUSD has support below on a pullback, but generally looks as though at some point it wants to trade 13400/500. NZDUSD is a trade we are currently tracking after putting in reversal-type price action at resistance. USDJPY is working on trading its way back up into the 11400s.
Following a big rejection from over the 2011 trend-line, gold continues to look headed lower after breaking a trend-line running back to the earlier-part of the year. Silver looks poised to visit the December low at 15.64 and possibly worse soon.
The bounce in crude looks done as it runs into stiff resistance around the 47 level. Looking for it to materially weaken for another leg lower.
The S&P 500 is trying to hold onto its consolidation and November trend-line, but needs to turn up soon if it is to keep from experiencing a possibly sizable drop. The DAX, CAC 40, and FTSE 100 are all positioned for lower prices, with support levels having been broken in all cases. The CAC 40 is in the election gap while the DAX is at risk of falling into the April gap.
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.