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DXY bounced off 95.00 resistance firmly and it is closing the session at 94.25 – well below 20 days moving average. This is a [perfect bearish reversal and I expect DXY to keep priming lower prices in the coming days or weeks. Today’s level is a perfect place to enter shorts with the stops just above 95.00 resistance. Targets are: 93.45 and 92.70
EUSUSD was pretty much dead today. The same outlook remains. I expect upside to unfold as long as the price is trading above 20 days moving average. The current level @1.1670 is good to buy this market with stops just below the recent low @ 1.1530 and targets above 1.1850
The dollar rose on Wednesday against all major currencies-competitors. As a result, the dollar index DXY, reflecting the value of the dollar to the basket of 6 major currencies, rose on Wednesday by 0.58% to around 94.48. The overall positive dynamics of the dollar and DXY persists amid the Fed’s inclination to further tighten monetary policy and positive macro data, indicating the acceleration of the growth of the US economy.
DXY logged 3rd consecutive down day and the index closed the session at 94.11, which sits below 20 days moving average. This is first bearish signal and DXY can be sold from the current levels. The stops should be placed just above 95.20 resistance and targets at 92.80.
Gold took off. The yellow metal traded as low as 1237 today, bounced off and staged a impressive rally closing the day at 1252 – the highest in 4 sessions. Today’s daily bar engulfed 3 previous days giving the beginning of a larger move upwards. We can expect the downtrend to pause and reverse.
Gold reach expected low at 1241.00. This is a major support level for this market and given very oversold conditions, GLD is likely to bounce off this level and trade a little higher. I would expect the upside will not be aggressive and GLD will be moving sideways to up a lot in the next two months. I don’t see any particular setups in the price action for the moment. It looks like the consolidation is about to take place.
The price of gold is declining for the third week in a row. The XAU / USD develops a downward movement below the strong resistance levels 1299.00 (EMA200 on the daily chart), 1277.00 (Fibonacci level 61.8% of the correction to the wave of decline since July 2016), 1274.00 (EMA200 on the weekly chart). Against the backdrop of expectations of further tightening of the Fed’s monetary policy, it is likely that the XAU / USD will fall further with the immediate target at the support level of 1248.00 (50% Fibonacci level).
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