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The Dollar continues to remain generally constructive, with the DXY working on building a wedge of sorts that could lead the Greenback higher next week. The Euro is of course looking opposite the DXY index, while GBPUSD presents an interesting case for at least bouncing off long-term trend support. Gold price is coming to life again off the August trend-line, but the silver chart is actually more appealing here as it hugs an important trend-line.

Technical Highlights:

  • The US Dollar Index (DXY) coiling up into a wedge
  • Euro stuck in downtrend, next move looks lower
  • GBPUSD is at an interesting long-term spot
  • Silver hugging important trend-line

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) coiling up into a wedge

The US Dollar Index (DXY) over the past month has been carving out an ascending wedge that has it positioned towards higher prices at the moment. These patterns can result in breakouts in the opposite direction but it is a lower probability scenario given the overall trend. Given the proximity to the apex of the wedge a breakout could come at any time. Watch the top-side trend-line near 99 as the next level of resistance on a rally.

US Dollar Index (DXY) Daily Chart (building a wedge)

Dollar Coiling; Euro, Pound, and Silver Price Charts for Next Week

Find out where our analysts see the Dollar heading in the coming weeks based on both fundamental and technical factors – Q2 Dollar Forecast

Euro stuck in downtrend, next move looks lower

The Euro has been a choppy mess, but in reverse of the DXY it is posting a descending wedge pattern. There are longer-term underside trend-lines to think about on a breakdown, but a drop through 11000 would help clear a path to much lower prices. The French election gap from 2017 at 10724 is still in mind as a target.

EURUSD Daily Chart (looks headed lower)

Dollar Coiling; Euro, Pound, and Silver Price Charts for Next Week

Find out where our analysts see the Euroheading in the coming weeks based on both fundamental and technical factors – Q2 Euro Forecast

GBPUSD is at an interesting long-term spot

GBPUSD is trading around a trend-line dating back to the October 2016 flash-crash low. This t-line has other important connecting points, which makes it an important one. At this time there isn’t any type of bullish response which means it may want to slide on through but can’t rule out a strong bounce even if only short-lived. In either case, look for volatility to pick up here.

GBPUSD Daily Chart (long-term trend-line)

Dollar Coiling; Euro, Pound, and Silver Price Charts for Next Week

Find out where our analysts see the Pound heading in the coming weeks based on both fundamental and technical factors – Q2 Pound Forecast

Silver hugging important trend-line

Gold is a bit of a difficult handle right at the moment, but turning to silver the chart is cleaner with it hugging the trend-line off the February high. It is a ‘line-in-the-sand’ that keeps silver pointed towards 14. A break above the trend-line and 14.64 could be a strong reason to flip the script from short to long.

Find out where our analysts see Gold heading in the coming weeks based on both fundamental and technical factors – Q2 Gold Forecast

Silver Price Daily Chart (hugging t-line)

Dollar Coiling; Euro, Pound, and Silver Price Charts for Next Week

Resources for Forex & CFD Traders

Whether you are a new or an experienced trader, DailyFX has several resources available to help you; indicator for tracking trader sentiment, quarterly trading forecasts, analytical and educational webinars held daily, trading guides to help you improve trading performance, and one specifically for those who are new to forex.

---Written by Paul Robinson, Market Analyst

You can follow Paul on Twitter at @PaulRobinsonFX