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The US Dollar Index (DXY) had a couple of short-term possibilities with price action carving out contradictory patterns, but yesterday that was clearly resolved and has the Dollar poised for new swing highs. The Euro is headed for another run-in with 11300, a big level. The AUD/NZD trade we’ve been on top of is finally getting somewhere. Gold turn off resistance has important support in view already.

Technical Highlights:

  • US Dollar Index (DXY) poised to trade to new swing high
  • EUR/USD has big support test up once again at 11300
  • AUD/NZD H&S trade working towards support levels
  • Gold price from resistance to important support soon

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

US Dollar Index (DXY) poised to trade to new swing high

The US Dollar Index (DXY) bounced off trend-line support and broke free from a small corrective pattern. This has new swing highs from 10/31 in focus, but immediately upon reaching new highs the top-side trend-line from a year-ago will be in focus as resistance once again.

What could help propel the index through, though, is the Euro breaking 11300, a major level which if breached could spark a wave of selling. Overall, though, in the near-term there looks to be at least a little more upside in store for the DXY…

US Dollar Index (DXY) Daily Chart (Watch top-side trend-line)

US Dollar Index (DXY) daily chart, watch top-side trend-line

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

EUR/USD has big support test up once again at 11300

As just mentioned, EUR/USD has a big support test just at its feet. The 11300 level is huge. It all began back on the day of the U.S. Presidential elections when the Euro spiked and dropped. In August it was used as a big level of support and more recently buyers were found on 10/31. It is to be treated as support until broken of course, but if it does break given its importance it could lead to a swift move lower and take out the under-side trend-line from a year-ago.

EUR/USD Daily Chart (11300 a big level)

EUR/USD daily chart (11300 a big level)

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

AUD/NZD H&S trade working towards support levels

AUD/NZD is taking some time, but the trade idea discussed a few weeks back is working its way towards targeted levels. There is support the 10685/55 region, then the ultimate target arrives near 10600 via the 2015 trend-line.

AUD/NZD Daily Chart (working towards target)

AUD/NZD daily chart, working towards target

Gold price from resistance to important support soon

Gold continues to be sort of ‘mystery’ market being tugged in two different directions, hence the back-and-forth but neither here nor there direction it is taking. Resistance in the upper 1230s/low-40s proved too much but now we have support in the 12012/08 region focus. This will be the first area to watch for signs of buying, but if they don’t show up there then the trend-line off the August low is likely to come into play fairly quickly.

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

Gold Daily Chart (From resistance to support)

Gold daily chart, from restistance to support

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