Broadly speaking, the U.S. Dollar continues to be directionless. Within that spectrum EURUSD is working its way higher ever-so-slowly towards trend resistance about 40-60 points from current levels. GBPUSD is very near the apex of a wedge and set up for a breakout any time now. Turning to gold, it is heading towards a test of a descending wedge pattern that is seen as likely to have the metal rolling lower soon.
Technical Highlights:
- EURUSD trading towards trend-line resistance
- GBPUSD very near the apex of wedge
- Gold working on completing descending wedge
See where our team of analysts see your favorite markets and currencies headed in the in the DailyFX Trading Forecasts.
EURUSD trading towards trend-line resistance
The Euro continues to trade like the Euro in this low-vol environment, taking days just to move a hundred pips. But nevertheless, it is still abiding by support and resistance levels, most recently swinging higher off the March low. It’s just expectations for now need to be tempered in what it will give us.
Next up is to see if resistance will hold true, as a pair of trend-lines run down from the January 2018 top and September. These run the vicinity of 11345/80. Given the low-vol environment and resistance in place it looks like another swing lower could be in store soon. A touch and turnaround in momentum is needed first before looking to short, similar to other swings so far this year.
EURUSD Daily Chart (t-line resistance ahead)
Find out where our analysts see the Euro going in the coming weeks based on both fundamental and technical factors – Q2 Euro Forecast
GBPUSD very near the apex of wedge
Cable has become increasingly quiet and with this price action is coming the development of a descending wedge pattern. It is also developing on solid support via a trend-line and 200-day as well. We should see a breakout unfold soon in one direction or another. Will run with a trading bias once we do. For more on the broader set-up, check out yesterday’s piece on GBPUSD.
GBPUSD Daily Chart (near apex of wedge)
Find out where our analysts see the Pound heading in the coming weeks based on both fundamental and technical factors – Q2 GBP Forecast
Gold working on completing descending wedge
Gold continues to work on a solid-looking descending wedge. It still has room and time to develop, but with a full completion and breakout a large swing should develop. The likely direction of the break is to the downside given the descending nature of the pattern and turn off the top of the larger wedge on the weekly time-frame.
Silver is nearing the neckline of a head-and-shoulders pattern, alternatively it could be a falling wedge that leads to a rally. This pattern and the gold set-up were discussed in detail this morning.
Find out where our analysts see Gold heading in the coming weeks based on both fundamental and technical factors – Q2 Gold Forecast
Gold Daily Chart (Descending wedge…)
Bonus Chart: AUDJPY Breakout
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---Written by Paul Robinson, Market Analyst
You can follow Paul on Twitter at @PaulRobinsonFX
