Trading Outlook: USD, JPY-crosses, Gold Price, Oil & More
Enjoy the recording? Join Paul live Tuesday-Friday, please see the Webinar Calendar for details.
Today, we discussed the weak posturing of the US Dollar Index (DXY), and subsequent bullish price action primarily in GBPUSD. The euro failed on a breakout this week, but still remains poised to trade to higher levels, with eyes for the 2016 high around 11600. USDJPY is on the verge of triggering a short-term bearish head-and-shoulders pattern after putting in a rejection bar earlier this week at resistance.
We took a look at a few of the Yen-crosses, and noted bearish developments in those as well. Primary focus was on GBPJPY and NZDJPY. The others are vulnerable too as they turn down from resistance. CADJPY is at the neckline of a long-term inverse head-and-shoulders pattern and likely to turn down before possibly making good on a neckline breakout.
USDMXN is well below the support level we eyed as a last stance before heading towards 17.08/06. USDZAR turned lower from resistance and appears to continue lower in line with the trend that began last year.
Gold is at an important trend-line while silver is still poised for lower prices if recent highs maintain. Crude oil has a trend-line worth noting, but if it doesn’t turn down then the 47 level will likely come back into play as a spot of interest for sellers.
Global equity indices recently broke above resistance levels which had them pointed lower, but aren’t out of the woods just yet. The S&P has record highs to contend with and we’ll watch how price action plays out on any attempt to carve out a new record. The DAX still has a potentially bearish H&S configuration if it turns down soon. The FTSE broke its recent range, but has work to do to clear major resistance.
For full technical considerations, please see the video above…
Find out where our team of analysts see markets heading in our Q3 Forecasts.
---Written by Paul Robinson, Market Analyst
You can receive Paul’s analysis directly via email by signing up here.
You can follow Paul on Twitter at @PaulRobinonFX.