The US dollar looks like it generally wants to trade higher, but it’s still a currency-picker’s market. For example, the euro looks like a sell, but the yen a buy. Precious metals have been bottled up, but that may change soon.
Technical Highlights:
- EUR/USD broad outlook in flux, looking headed lower near-term
- Yen strength seen across the board
- Gold & silver looking to soon make a move
For longer-term technical and fundamental analysis, and to view DailyFX analysts’ Top Trading Opportunities for this year, check out the DailyFX Trading Guides page.
EUR/USD broad outlook in flux, looking headed lower near-term
The broader outlook for the euro is still unclear as it chops around below the 2008 trend-line, it could be topping or building a bull-flag. In the near-term, though, even if the move is an eventual breakout above the long-term trend-line, risk looks skewed to the downside towards the April trend-line and 2017 high just under 12100.
EUR/USD Daily Chart
Other USD-pairs examined were GBP/USD, USD/CHF, AUD/USD, NZD/USD, and USD/CAD…
Yen strength seen across the board
The Japanese yen continues to strengthen across the board, with USD/JPY on the verge of yet another lower-low beneath 10525. The next big level of price support doesn’t arrive until the U.S. election-day low from November 2016 at 10119.
See how current positioning in various pairs could signal their next moves on the IG Client Sentiment page.
USD/JPY Daily Chart
CHF/JPY is another that has turned down from resistance with little in the way of support until a gap-fill from April at 10944, then the low from that same month at 10768. It’s quite a bit lower, but if JPY picks up steam it could get there in fairly short order.
CHF/JPY Daily Chart
AUD/JPY, a pair we discussed on Wednesday, is making good on rejection from resistance in the mid-8400s, now on approach to the recent low around 8150. It will be interesting to see how CAD/JPY treats the support zone it just entered from 8115 down to 8057, but, again, if JPY garners further momentum it might not be much more than a temporary stopping point. We also discussed GBP/JPY and EUR/JPY...
Gold & silver looking to soon make a move
Precious metals continue to be a difficult market as price action winds up, but gold and silver look like they will soon make a break for it. Gold continues to remain heavy below the 2013 trend-line, with risk seen in breaking 1300 towards the 200-day at 1289 and the trend-line from December 2016.
Silver is working on a symmetrical triangle, and given its inability to trade above the 16.80/17 threshold it is likely to breakdown soon. Levels to watch are 16.17, followed by the July trend-line around 16, then 15.62 on aggressive selling.
Gold Daily Chart
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---Written by Paul Robinson, Market Analyst
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