USD showing some signs of life against a few currencies
EUR/NZD appears to be winding up for a big move, AUD/NZD too
Gold has a bearish pattern developing around resistance
USD SHOWING SOME SIGNS OF LIFE AGAINST A FEW CURRENCIES
The dollar is beginning to show signs of life against a few major currencies. One of the pairs we focused on was AUD/USD, as it is in the process of breaking a bullish channel following a rejection from a long-term resistance zone. If today’s break holds, looking for a drop towards 7900/800. NZD/USD also breaking down from resistance, looking for 7200 on follow-through.
DAILY CHART – AUD/USD
DAILY CHART – NZD/USD
EUR/USD and GBP/USD have yet turn with the same kind of force as the prior two mentioned, but could soon honor reversals from last week. Outlook still remains a bit murkier for those at this time. We’ll revisit next week. USD/CAD is trying to turn up from a trend-line dating back to 2012, as long 12249 holds it has a chance at rallying from here.
EUR/NZD APPEARS TO BE WINDING UP FOR A BIG MOVE, AUD/NZD TOO
EUR/NZD is coiling up and looks poise to breakout. Right now, it is looking like a top-side break will take shape, but we need to wait for a daily close outside of the wedge before running with a trading bias. AUD/NZD is pressing down hard on neckline support of a head-and-shoulders pattern, but we’ve been here before and it bounced hard. A daily close below 10824 should set the pattern into motion.
DAILY CHART – EUR/NZD
DAILY CHART – AUD/NZD
GOLD HAS A BEARISH PATTERN DEVELOPING AROUND RESISTANCE
Gold is trading around a trend-line dating back to 2013, one which it has yet to cross on a weekly or monthly closing basis (only briefly on a daily basis). Around this line is the potential for a head-and-shoulders pattern, most easily visible on the 4-hr time-frame. A neckline break should usher in a sell-off from resistance.
4-HR CHART – GOLD