The USD index (DXY) is backing down into support, which means the Euro may soon decline from its related trend resistance. AUDUSD is currently sporting a bearish price pattern, but it does have an alternate path that could be bullish. AUDNZD is turning lower from trend resistance, in-line with the general path of least resistance. Gold is sporting a bearish sequence in the near and longer-term term.
- USD Index backing into trend support, on reversal watch
- AUDUSD and AUDNZD in the spotlight with near-term bearishness
- Gold is looking at near and longer-term bearish possibilities
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USD Index backing into trend support, on reversal watch
Since hitting its head on peaks from Nov-Dec the US Dollar Index (DXY) has been steadily selling off. This could soon change with short and longer-term trend-lines rising up in the current vicinity. Even if bullish price action doesn’t develop immediately, there is perhaps an even stronger area of support down near 95.80 – the underside of a possible ascending wedge and the 200-day meet up to make for solid confluence. The key is to watch price action, where, if at all, do we see bullish price action? A bullish response would mean the opposite for the Euro, which was discussed yesterday…
US Dollar Index (DXY) (Corrective after breakout)
AUDUSD and AUDNZD in the spotlight with near-term bearishness
AUDUSD is carving out a channel (bear-flag) as it trades up against resistance. Respect of resistance and a break of the underside parallel should have AUD rolling back downhill. The price action over the past couple of months could tighten up, offering a possibly bullish alternate should a descending wedge trigger to the upside through the upper trend-line of pattern. For now, though, leaning bearish.
AUDUSD 4-hr Chart (Channel, resistance)
AUDNZD turning lower off trend-line and price resistance, in-line with a pervasive downtrend. Look for further weakness to continue as long as it stays below trend resistance, with an eventual target of the spike-low near 10200 and worse…
AUDNZD 4-hr Chart (t-line/price resistance)
Gold is looking at near and longer-term bearish possibilities
Gold is taking on a corrective look to it in the near-term as price action is sluggish on the top-side after the late-Feb, early-March plunge. A break below 1293 should have the neckline of a broader head-and-shoulders top in play. As said this morning, it’s not the prettiest pattern, but sometimes those can be the best. For more detail on gold and silver, check out this morning’s commentary…
Gold Daily Chart (bearish near and longer-term)
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---Written by Paul Robinson, Market Analyst
You can follow Paul on Twitter at @PaulRobinsonFX