The Euro bounce is starting to falter and with the general trend lower it could be time for it to resume weakness again next week. AUDUSD broke hard on Thursday, triggering a bear-flag and now looking to trigger another bearish price pattern in the days ahead. Gold stopped short of the 1350/66 zone, watch to see if a weekly key-reversal can hold and how buyers respond at channel support.
- EURUSD could resume weakness in coming days
- AUDUSD set-up for more selling ahead
- Gold weekly reversal will soon have channel support in focus
See where our team of analysts see your favorite markets and currencies headed in the weeks ahead in the Q1 Trading Forecasts.
EURUSD could resume weakness in coming days
EURUSD’s bounce from near the November low is thus far uninspiring and has the look of a corrective swing higher following the prior leg down. The underside parallel is acting as somewhat of a line of resistance with small failed intra-day rallies developing around it. It won’t take much to get it back to the lows at 11234 and retesting the November low of 11216. A break below the latter level could bring in a bit of momentum.
EURUSD Daily Chart (Trend weak, failing momentum)
Check out the Q1 Euro Forecast to see our analysts’ intermediate-term fundamental and technical outlook.
AUDUSD set-up for more selling ahead
Yesterday, AUDUSD broke a bear-flag on the 4-hr and in the process moved it closer to breaking the neckline of a developing H&S pattern. A decline below 7021 should get it rolling downhill back towards a test of the Jan 2 flash-crash. Even if things don’t play out as anticipated it will take a good deal of work to get Aussie pointed back in the right direction.
AUDUSD 4-hr Chart (Bear-flag broke, watch H&S neckline)
Gold weekly reversal will soon have channel support in focus
Allowing for wiggle room, if the weekly key-reversal candle holds through today one could constitute the weekly high as a test of the trend-line (top of a broad wedge) dating back to 2014. With that in mind, the lower parallel of the channel dating back to November becomes very important. Stay above and a neutral to bullish bias remains intact for the moment, but break below and we’ll get a confirmation signal that the weekly reversal is set to gain traction towards materially lower prices. The coming sessions could be quite important for gold.
Gold Weekly Chart (Working on key reversal bar in big area)
Check out the Q1 Gold Forecast to see our analysts’ intermediate-term fundamental and technical outlook.
Gold Daily Chart (Watch lower parallel of channel)
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---Written by Paul Robinson, Market Analyst
You can follow Paul on Twitter at @PaulRobinsonFX