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The Euro tried to reverse on Friday but failed to garner any follow-through, bringing the August low into play. This has the DXY on its way higher, giving dollar longs the benefit of the doubt, overall. AUD/NZD thoroughly tested neckline resistance but was rejected yesterday. This shifts momentum back in-line with the breakdown from earlier this month. Gold finally pulls off resistance, bringing support levels a bit lower into view.

Technical Highlights:

  • US Dollar Index (DXY) treading around resistance
  • EUR/USD not showing much life after Friday’s reversal
  • AUD/NZD turned down from H&S neckline
  • Gold price turning strongly lower from resistance

Find out where our team of analysts see your favorite markets and currencies are headed the next three months in the DailyFX Q4 Forecasts

US Dollar Index (DXY) treading around resistance

The US Dollar Index (DXY) turned hard from resistance on Friday, suggesting perhaps a move lower might be in store. However, trend-line support on the 4-hr kept a bid in and with that we are now seeing an attempt to trade above the August high of 96.98. If it does, the next level (or line in this case) of resistance clocks in at a trend-line crossing over from a year-ago. The benefit of the doubt remains with longs for now.

US Dollar Index (DXY) Daily Chart (Trying to break out)

dxy daily chart, trying to break out

See what key fundamental and technical factors are expected to drive the US Dollar through year-end in the Q4 USD Forecast

EUR/USD not showing much life after Friday’s reversal

The Euro’s reversal on Friday failed to bring with it much more buying interest. The largest driving component of the DXY is now pushing towards the August low at 11301. On a break through 11301 the underside trend-line from November will come into focus in the low-11200s.

EUR/USD Daily Chart (August low coming up)

eurusd daily chart, August low coming up

See what key fundamental and technical factors are expected to drive the Euro through year-end in the Q4 Euro Forecast

AUD/NZD turned down from H&S neckline

The neckline of the head-and-shoulders formation broke during the middle of the month and was thoroughly tested to end last week, start the current one. The turn down yesterday was fairly fierce and seen as likely the worst of the retest. Stay below 10900 and the pattern remains firmly intact for lower prices.

AUD/NZD Daily Chart (Turning down from neckline)

aud/nzd daily chart, turning down from neckline

Gold price turning strongly lower from resistance

Gold posted a key reversal on Friday after probing a bit further into resistance via lows from the end of 2017 to more recent along with the upper parallel of the channel off the August low. The turn down is seen as bringing into play the 1214/10-area from August/September and possibly the lower parallel if selling picks up momentum.

Gold Daily Chart (Coming off confluence of resistance)

gold daily chart, coming off confluence of resistance

See what key fundamental and technical factors are expected to drive Gold through year-end in the Q4 Gold Forecast

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