Charts for Next Week – DXY, Euro, USD/JPY, Gold & More
There are several long-term trend-lines we focused in on today, which will look to have implications next week; DXY heading towards one, Euro running into one, USD/JPY below one, gold trying to conquer one. Also included are updates from Wednesday’s session.
- US Dollar Index (DXY) could soon see the 2011 trend-line
- Euro in another face-off with 2008 trend-line
- USD/JPY damage done below 2012 trend-line
- Gold looking to close week above 2013 trend-line
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US Dollar Index (DXY) heading towards 2011 trend-line
The US Dollar Index (DXY) had a rough week, swiftly reversing the bounce over the past couple of weeks. This has attention on the trend-line rising up from the 2011 low in the vicinity of 87. There is an underside trend-line from the September low which it is currently bouncing from, but it is seen at this time as only enough to provide a bounce and nothing ultra-meaningful. Early week strength may offer traders an opportunity to jump aboard more dollar weakness.
US Dollar Index (DXY) Daily Chart
Euro in another face-off with 2008 trend-line
The 2008 downtrend line remains a major obstacle for EUR/USD, but if it can climb above then the look for the DXY (EUR = ~57% of the index) to cleanly break the September underside trend-line and move to the one rising up from 2011.
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EUR/USD Daily Chart
USD/JPY damage done below 2012 trend-line
USD/JPY breaking the 2012 trend-line on a weekly closing basis could be quite significant, and barring an unlikely 250 pip rally from now through the end of today it’s a confirmed weekly break. Ideally, to initiate new shorts an early week bounce develops and fades. Looking to the low-107s as resistance.
USD/JPY Weekly Chart
Gold looking to close week above 2013 trend-line
Gold is doing its best to post a closing candle above the 2013 trend-line, thus opening up room to trade towards 1400 and possibly beyond. The closing print (today barring a sharp decline from now) and a push beyond 1366 (last reversal-day high around the trend-line) should get gold rolling.
Gold Weekly Chart
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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.