Yesterday’s surge in the euro may have been enough to keep it moving higher in the week ahead. USD/CAD has sunk down into an important cluster of support, will it hold or fold? AUD/NZD is continuing to etch out a head-and-shoulders and maybe near its breaking point. The brutal monthly range in gold may be close to resolving with the dollar on the move, but still need to be patient.
Technical Highlights:
- EUR/USD breakout paving path for higher prices
- USD/CAD trading at cluster of support; hold or fold?
- AUD/NZD continues to build head-and-shoulders pattern
- Gold price continues to range, waiting for break (maybe soon?)
To check out our intermediate-term fundamental and technical outlook on major markets and currencies, see the DailyFX Trading Forecasts.
EUR/USD breakout paving path for higher prices
Yesterday’s surge in the euro helped pave a path towards higher prices, with it clearing several hurdles in the mid-11700s. Next up in terms of significant resistance is the June high at 11852, then the targeted area of 11900/2000. As long as EUR/USD doesn’t sink back below 11720 the outlook is favorable for the single-currency.
EUR/USD 4-hr Chart (Supported after breakout)
To see what’s been driving the Dollar and Euro, check out the Quarterly Reports
USD/CAD trading at cluster of support; hold or fold?
USD/CAD is in the ‘drop-zone’, that is, it is trading a critical area of support where if it doesn’t hold, a real possibility with USD broadly weakening, it could continue to drop with momentum. It’s support until broken, but the low-end of the zone right around 12860 is in real danger of giving way.
USD/CAD Daily Chart (Hold or fold?)
AUD/NZD continues to build head-and-shoulders pattern
AUD/NZD is one we’ve been keeping on the back-burner for a little while now, but that may soon change if the neckline of the head-and-shoulders pattern breaks. There is a good amount of support around the 11840/30 area, so a solid close below will be needed to kick off an extended run lower.
AUD/NZD Daily Chart (Head-and-shoulders pattern)
Gold price continues to range, waiting for break (maybe soon?)
As we discussed yesterday, the range in gold is an unusually small one by historical standards, and as such we should be on our toes for a breakout. The dollar drop yesterday did little to kick precious metals into high gear, maybe more weakness for the currency will. Regardless of what drives it or which direction, not interested in tough this thing wakes up from its of its trading doldrums.
Gold Daily Chart (Waiting on range-break)
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
