The U.S. Dollar looks like headed for more selling versus its major counterparts, with a couple of the more appealing charts residing in the Euro and Canadian Dollar. The Buck is seen as likely to drop against other major currencies, but the set-ups are a little murkier elsewhere. Gold is rising again today, firmly pressing up into a long-term resistance zone that is seen as a potential near-term threat to the rally.
- EURUSD short-term bull-flag readying for a breakout
- USDCAD carving out a potentially bearish price sequence
- Gold price rallying into major long-term resistance
For forecasts and educational guides, check them out on the DailyFX Trading Guides page.
EURUSD short-term bull-flag readying for a breakout
The Euro has been stalling as of late, treading water. This price action has a bull-flag building on the 4-hr time-frame that should soon lead to higher prices. A rally might not prove very lasting, though, as resistance begins clocking in around 11280 up to 11350, where several angles of resistance reside (see chart below).
EURUSD Daily Chart (rally to resistance?)
EURUSD 4-hr Chart (bull-flag)
USDCAD carving out a potentially bearish price sequence
USDCAD posted a reversal candle on the weekly time-fame prior to this week. This has the current climb higher at risk of only acting as a counter-trend rally before another drop comes. On the 4-hr time-frame the channel structure off the July low is at risk of breaking if a head-and-shoulders pattern should trigger. The right shoulder still needs to develop, but if it is to do-so then it likely to happen in the next day or two.
USDCAD Weekly Chart (reversal candle)
USDCAD 4-hr Chart (chart starting to roll, H&S forming)
Gold price rallying into major long-term resistance
Gold is pushing into a long-term resistance zone created by bottoms formed during the topping process after the 2011 peak. The zone from ~1522/75 could dent the current rally, even though it appears set to extend towards even higher levels. Watch how price action plays out in the near-term; a strong turnabout or reversal on the daily time-frame.
Gold Price Weekly Chart (Big resistance area)
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