The US dollar is showing some life and the DXY has a little room to run before coming into resistance, EUR/USD is the focus here. Gold looks headed lower after failing again around long-term resistance with a bearish price pattern in play.
Technical Highlights:
- US Dollar Index (DXY) has room to rally until resistance
- EUR/USD breaking down, appears headed to trend-line support
- Gold poorly positioned, lower prices look ahead
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US Dollar Index (DXY) has room to rally until resistance
The US Dollar Index (DXY) held onto a peak created in 2010 during the last leg lower, giving it some life to the upside. There is confluence between the underside 2015 trend-line and trend-line running lower since December. The targeted area clocks in around 90.65.
US Dollar Index (DXY) Daily Chart
EUR/USD breaking down, appears headed to trend-line support
Naturally, with the DXY rallying, as 57% of the index, EUR/USD is moving in reverse. It put in a double-top at the 2008 trend-line, and this week broke the neat channel it was trading higher in. This has focus shifted towards a slope from May 2016 and the December trend-line.
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EUR/USD Daily Chart
Gold poorly positioned, lower prices likely ahead
Earlier this morning, we discussed precious metals and noted that they look headed lower. Gold is struggling around the 2013 trend-line, and is also amid a bearish price sequence. On a break of 1320, the next targeted level is 1305. The measured move of the short-term 'head-and-shoulders' pattern is in close alignment at 1303.
Gold 4-hr Chart
We also looked at NZD/USD (bearish), USD/CHF (bullish), a few key cross-rates (undecided), crude oil (bearish), and global equity indices (bullish). For full technical considerations, please check out the video.
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---Written by Paul Robinson, Market Analyst
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