The Dollar is looking to reassert itself after having undergone a corrective move. The Euro will be the dominating factor in the DXY index, while the Pound’s weakness may continue for a little while longer until a big level arises versus the Dollar under 12700. Gold price moved swiftly lower yesterday with the nudge of stronger stocks and Dollar; important trend-line test is nearing…
Technical Highlights:
- The US Dollar Index (DXY) looking to continue higher
- GBPUSD working towards key inflection point
- Euro looking towards the 11100-mark or worse soon
- Gold price looking towards August trend-line test
See where our team of analysts see your favorite markets and currencies headed in the in the DailyFX Trading Forecasts.
The US Dollar Index (DXY) looking to continue higher
The US Dollar Index (DXY) carved out a bullish corrective wedge in recent sessions and with yesterday’s rally it is pushing out of the pattern. This has the Dollar positioned for higher prices in the session ahead with the next immediate level resistance at 98.10, followed by 98.33 (April high). A breakdown below yesterday’s low at 97.44 is reason to become cautious on a bullish outlook.
US Dollar Index (DXY) Daily Chart (out of wedge)
Find out where our analysts see the Dollar heading in the coming weeks based on both fundamental and technical factors – Q2 Dollar Forecast
GBPUSD working towards key inflection point
GBPUSD continues to get hit for a 5th day in a row so far, with its only up day since May 3 having been only a handful of pips. This has the pair currently trading under the Feb 14 low. Continued weakness is anticipated in the near-term, but a big level is coming up. The August low was met with a powerful reversal back on Jan 15, making the 12660s important to watch price action for signs of a reversal.
GBPUSD Daily Chart (12660s could be big)
Find out where our analysts see the Pound heading in the coming weeks based on both fundamental and technical factors – Q2 Pound Forecast
Euro looking towards the 11100-mark or worse soon
The Euro is edging lower in-line with its trend, looking to soon put pressure on the 11100 mark. A breakdown will have underside trend-lines in play, and with volatility so low it won’t be surprising to see another bounce develop from around last month’s low or just beneath in the upper 11100s. The trading bias is down but caution is warranted on shorts as lower levels get probed.
EURUSD Daily Chart (low near 11100 the risk)
Find out where our analysts see the Euroheading in the coming weeks based on both fundamental and technical factors – Q2 Euro Forecast
Gold price looking towards August trend-line test
Gold took a hit yesterday and with it the trend-line off the August low could soon be back in play near 1275. A break below there will quickly put pressure on 1266, the double-bottom lows made previously make on the August trend-line. From there things could get ugly for gold.
Find out where our analysts see Gold heading in the coming weeks based on both fundamental and technical factors – Q2 Gold Forecast
Gold Price Daily Chart (August t-line in sight)
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---Written by Paul Robinson, Market Analyst
You can follow Paul on Twitter at @PaulRobinsonFX
