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With USD back on the offensive, EUR/USD is testing a big level of support while USD/CAD looks to try and make good on a bull-flag breakout. GBP/NZD is up against resistance, but pulling back to a higher time-frame there is a big-picture pattern that could soon have this choppy pair trending. Gold’s gradual pullback is beginning to attract selling interest, moving towards a pivotal point.

Technical Highlights:

  • EUR/USD testing 11500-area, big support
  • USD/CAD broke out of a bull-flag
  • GBP/NZD at resistance, top of triangle
  • Gold price pullback gaining downside momentum

To check out our intermediate-term fundamental and technical outlook on major markets and currencies, see the DailyFX Trading Forecasts.

EUR/USD testing 11500-area, big support

The euro is currently testing the area around 11500, with it having longer-term implications than just the bottom of the once-wedge back to late-May. A hold keeps EUR/USD afloat for now and somewhat constructive, but a break will be viewed as having potential to confirm the recent rally as only a corrective bounce amid the trend since the top earlier this year.

EUR/USD Daily Chart (11500 support)

eur/usd daily chart with 11500 support

To see what’s been driving the Euro, check out the Quarterly Report

USD/CAD broke out of a bull-flag

USD/CAD broke out of a bull-flag yesterday, a set-up we looked at a few weeks back. The final test of the pattern came right at the 2012 slope, a persistently important angle. The breakout has focus on top-side levels beyond 13400. A slight pullback or consolidation here would be ideal, but as long as price doesn’t close back inside the flag then the bias is for higher prices.

USD/CAD Daily Chart (Bull-flag breakout)

usd/cad daily chart, bull-flag breakout

GBP/NZD at resistance, top of triangle

GBP/NZD hasn’t been favored this year as choppy price action has dominated. However, for the same reason we’ve been avoiding it may be the reason why we are about to start paying attention. It is currently reversing off a top-side trend-line from late-November, which also makes up the top-side line of a broad triangle formation under construction for the past nine months. We need a confirmed breakout, but it’s close enough to the apex to put this one on the radar.

GBP/NZD Weekly Chart (Triangle)

gbp/nzd weekly chart, triangle

See what’s driving GBP in the Quarterly Pound Report

Gold price pullback gaining downside momentum

Yesterday, when we looked at gold we were discussing the gradual decline and how this could be a constructive situation, but also noted that it could spawn into more aggressive selling. So far, the latter is unfolding and if the dollar continues to press higher (watch euro 11500), gold may succumb to further selling and follow the way of its sibling, silver. A break below 1183 would add weight to this notion…

Gold Daily Chart (1183 support)

gold daily chart, at risk of gaining downside momentum

To find out what’s been driving gold, check out the Quarterly Gold Report

Resources for Index & Commodity Traders

Whether you are a new or an experienced trader, DailyFX has several resources available to help you; indicator for tracking trader sentiment, quarterly trading forecasts, analytical and educational webinars held daily, trading guides to help you improve trading performance, and one specifically for those who are new to forex.

---Written by Paul Robinson, Market Analyst

You can follow Paul on Twitter at @PaulRobinsonFX