The Euro isn’t particularly healthy, and the technical landscape remains a significant headwind for the single currency. EURAUD has an appealing set-up we’ve been looking at since last week, more upside looks to be in store in the near future. Gold price is sitting on minor support below major resistance, chart pattern suggests support might break soon.
Technical Highlights:
- EURUSD outlook remains weak within confines of channel
- EURAUD has an attractive long set-up unfolding
- Gold is sitting on support that might not last much longer
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EURUSD outlook remains weak within confines of channel
The Euro can’t get out of its way as the general trend remains pointed lower for the single currency. EURUSD turned down off of the June channel line on Friday and saw some good follow-through yesterday. There is solid support below at 10927, but generally pressure is set to remain as long as price stays below the upper channel line.
EURUSD Daily Chart (stuck pointed down in channel)
EURAUD has an attractive long set-up unfolding
EURAUD posted a very powerful reversal candle last week on the ECB. The turnabout came at confluent support by way of a trend-line from December and the 200-day MA. This is a set-up we noted on Friday, but needed to see a retracement, first. We got that into yesterday and today EURAUD is looking to carve out a higher-low as well. As long as today’s rally holds, the new line in the same falls under today’s low at 16015. Stay above and a rally looks like the most probable outcome.
EURAUD Daily Chart (higher low after rejection at support)
Gold is sitting on support that might not last much longer
Gold is sitting perched just below major long-term resistance that formed during the 2011/12 topping process, extending from 1522 up to 1575. The near-term price action is carving out a head-and-shoulders pattern on the upward channel line from late-May. A clean break below 1484 should have gold rolling downhill towards the 1450/30s area. The key is waiting for an actual break before getting aggressive with a short bias.
Gold Daily Chart (H&S may soon trigger, watch 1484)
Gold Price Chart by Tradingview
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---Written by Paul Robinson, Market Analyst
You can follow Paul on Twitter at @PaulRobinsonFX
