Trading Outlook for EUR/USD, AUD/USD, Yen Pairs, Gold & More
The bounce in the euro is expected to continue, but taking a pullback approach from here to join in on further strength. AUD/USD is at an important cross-road of resistance, how reacts to it will dictate next move. Gold has been tough, but has top and bottom-side thresholds which if broken could change that.
- EUR/USD on a dip, AUD/USD a short candidate
- A couple of yen pairs are at resistance, watching how they react
- Gold has top and bottom-side thresholds to watch for a breakout
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EUR/USD on a dip, AUD/USD a short candidate
EUR/USD put in a modest bullish reversal bar last week, an event we discussed in the weekly euro tech forecast. On that, the bias heading into the week has been for higher prices, but the preference is to buy a dip, one which we may or may not get this week. Yet, we will stay patient and should it dip and carve out a higher lower the idea is to look for another thrust higher into the 11900/2000s.
EUR/USD Daily Chart (Watching for higher-low)
For the intermediate-term fundamental/technical outlook, check out the Euro Forecast
AUD/USD is on the radar as a short candidate should we see a strong reaction lower from around current levels. There lies in the area of a thicket of resistance via downtrend lines, underside retest of a longer-term trend-line, the low from late-March, and top of a developing bear-flag.
AUD/USD Daily Chart (Thicket of resistance)
A couple of yen pairs are at resistance, watching how they react
EUR/JPY has been powering higher the past week, with it firmly pressing on prior support, now resistance extending back to early-March. Also in the vicinity is a trend-line from April. It will take a reversal today to put this one in play, but if it can falter and carve out a reversal bar by the end of the NY session, it will become a solid-looking short candidate.
EUR/JPY Daily Chart (Prior support as resistance)
GBP/JPY is running up against a pair of trend-lines of varying angles and timeframes. One is running down off the April high, while another is extending higher from April of last year. Just as is the case with EUR/JPY, a swift reversal lower is needed very soon to give shorts the upper hand.
GBP/JPY Daily Chart (Confluence of trend-lines)
For the intermediate-term fundamental/technical outlook, check out the Japanese Yen Forecast
Gold has top and bottom-side thresholds to watch for a breakout
Gold, as we discussed in detail this morning, is caught between a couple of steadfast levels/lines, with one side or the other in need of breaking before momentum can pick up. The preferred directional break is lower given the distance to the next set of support levels, while a bullish breakout will have gold in need of driving higher through a lot of previous price action, making it potentially a more difficult trade. For more details, check out this morning’s piece discussing gold and silver.
Gold Daily Chart (which side will break?)
For the intermediate-term fundamental/technical outlook, check out the Gold Forecast
Resources for Forex & CFD Traders
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---Written by Paul Robinson, Market Analyst
You can follow Paul on Twitter at @PaulRobinsonFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.