GBPUSD, EURJPY, Gold Price & More: Charts for Next Week
We saw a bit of movement last week with several asset classes making sizable moves. The week ahead may offer more, but traders need to be mindful that it is nearing the end of the summer vacation time, so liquidity in markets has thinned out considerably. This is seen as a factor likely to exacerbate price swings. We looked at several charts today, highlighted below is long-term support for Cable, EURJPY big and small picture views, as well as the likelihood that we have seen the best out of gold for a bit.
- GBPUSD continues to hold long-term support
- EURJPY views on long and short-term charts
- Gold price looks poised for a correction
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GBPUSD continues to hold long-term support
GBPUSD is finding a bit of buying interest down here around long-term support created during the 2016/2017 bottoming process. Recently, Cable broke lower from a wedge, but it was noted that this could reverse at any time given the bigger picture support levels. With that in mind, the last thrust was probably a bit of a wash-out. While other currencies look positioned to fall against the Dollar, the Pound has decent potential to rise from here.
GBPUSD Daily Chart (big long-term support)
EURJPY views on long and short-term charts
EURJPY looks bearish in both the longer-term and short-term. Long-term, EURJPY recently broke a seven year trend-line and is also below the January flash-crash low. Looking left there isn’t any sizable support for a good 800 points lower. The shape of the decline, slowly dribbling lower with smaller and smaller rallies has EURJPY poised to move lower in a potentially violent fashion.
Short-term, there is a continuation pattern developing that could at the least lead to another shot lower, if not help kick off an even bigger move down. Watch stocks, if they sell-off some more with JPY strength, then this could help further ignite a move down to the 2016 low or worse.
EURJPY Weekly Chart (big swoon could be in the works)
EURJPY 4-hr Chart (congestion pattern forming)
Gold price looks poised for a correction
Gold posted a nasty long-legged Doji the other day at big-picture resistance by way of several lows following the 2011 top. This puts a pause in the rise at the least, but is also seen as having a decent likelihood of starting a decline. Shorter-term, a head-and-shoulders pattern is forming, but has yet to confirm. If it does, at this time, weakness is only anticipated to be a pullback in an ongoing trend higher.
Gold Price Daily Chart (at risk of a correction here)
Gold Price Hourly Chart (H&S forming)
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---Written by Paul Robinson, Market Analyst
You can follow Paul on Twitter at @PaulRobinsonFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.