Technical Outlook for US Dollar, EUR & GBP Crosses, Gold, and More
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The US Dollar Index (DXY) is trading at the ‘neckline’ of the inverse ‘head-and-shoulders' pattern we’ve been discussing quite frequently as of late. Tomorrow’s ECB meeting has potential to make or break the pattern, as EURUSD is a mirror image of the DXY. AUDUSD is on the verge of breaking key support on a daily closing basis around the 7730-threshold. This would likely continue momentum towards the trend-line off the December low and July pivot near 7574. USDJPY is at a cross-road consisting of trend-lines/horizontal levels from varying angles. It’s an important spot and a push up to near 11500 will be needed for momentum to really kick in. We also looked at GBPUSD, NZDUSD, USDCHF, and USDCAD.
US Dollar Index (DXY)
In the land of cross-rates, we focused primarily on EURAUD, EURNZD, GBPAUD, and GBPNZD. The kiwi crosses are beyond resistance levels while the aussie crosses are on the verge of overtaking key resistance. GBPAUD was of particular interest as it attempts to overtake a big area of resistance in the 17100s. We took a look at a few of the Yen-crosses, with the group sporting a mixed bag. GBPJPY & EURJPY look bullish, while conversely NZDJPY and AUDJPY look headed lower.
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Gold and silver are still sporting weak postures, but could be carving out bullish descending wedges. An official trigger of these patterns is required first. For more on that, see this piece from earlier today. The S&P 500 put in a bearish engulfing pattern yesterday in extended territory, it could mean a period of weakness lies ahead. The DAX is treading around key long-term trend-lines, while the FTSE wedges is trying to hang on to the Feb 2016 trend-line.
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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.