The Euro is positioned for lower prices, as a test of the March/April lows looks to be just around the corner; from there we will need to see if support in this low-vol environment keeps it afloat or an extended move can develop. USDJPY has been very quiet but looks poised to continue higher towards long-term resistance lines. Gold is out of a topping pattern but has a sizable line of support to break before more bearish momentum can be realized.
- EURUSD looks headed for March/April lows
- USDJPY has room to run higher towards long-term resistance
- Gold price is near August trend-line, last line of support
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EURUSD looks headed for March/April lows
The Euro is undergoing a smallish bounce after getting hit hard on Thursday from a channel/bear-flag formation. Looking for a bit more weakness down towards the March/April lows near or under 11200 before another bounce may develop. It will require some strong momentum and a break of levels before consideration of an extended move can be taken seriously in the currently low volatility environment.
EURUSD Daily Chart (March/April lows look to be next)
Find out where our analysts see the Euro going in the coming weeks based on both fundamental and technical factors – Q2 Euro Forecast
USDJPY has room to run higher towards long-term resistance
USDJPY has been trading mostly sideways with a slight downward bias the past few sessions. This smacks of corrective and sets the pair up for another move higher. Confluent support was met in overnight trade and with the push off of it as long as the minor swing low holds, then the 11265/11335 area will be targeted from here.
USDJPY Daily Chart (supported, resistance above looks next)
Gold price is near August trend-line, last line of support
Gold is caught between a rock and a hard place as it broke price support recently in the ongoing descending wedge-like price action we are seeing. There is solid trend-line support rising up from August which needs to be broken next to clear the way for another leg lower. It is anticipated that it will break, but a small bounce may first develop before it does. This could be a good thing as it creates a minor swing low to operate off of with shorts on a break below trend-line support.
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 (sitting between support/resistance)
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---Written by Paul Robinson, Market Analyst
You can follow Paul on Twitter at @PaulRobinsonFX