Dollar Trades Mixed; Draghi's Speech Awaited
ORBEX | Sep 26, 2016 04:42AM ET
The US dollar is trading mixed in early Asian trading, as a rather slow day will see speeches from central bank governors including Kuroda, SNB's Jordan and Mario Draghi. US new home sales data is on the pipeline later today followed by Fed Member, Tarullo's speech. On the political front, the first US presidential debate will see Trump facing off Clinton.
EUR/USD Daily Analysis
EUR/USD (1.1225) remains consolidating near the neckline of the head and shoulders pattern on the daily chart, but price remains at risk of a downside move to test 1.1100 support. On the 4-hour chart, price action has been moving into a rising wedge pattern with prices briefly testing the minor resistance at 1.1250 - 1.1240. A breakout from this rising wedge could see EURUSD decline towards 1.1200 support followed by 1.1151.
GBP/USD Daily Analysis
GBP/USD (1.2978) pushed lower on Friday and invalidated the potential inverse head and shoulders pattern as prices fell back to September 20 lows. Still, with no significant lower low being formed and prices easing back following the break of the median line, GBP/USD could see some upside. A close above 1.3000 is essential to keep the bullish view intact. To the upside, initial resistance at 1.3067 will be challenged. A successful breakout to the upside could see the cable extend gains towards 1.3200 followed by the next major resistance at 1.3282 - 1.3294.
Gold Daily Analysis
XAU/USD (1333.31) Gold prices have been consolidating above 1331 - 1327.50 support last week by following the doji pattern and the subsequent local lows, prices consolidated into a head and shoulders pattern with the neckline support at 1336.15 being breached. Further declines can be seen towards 1324 - 1325 which will be the minimum target to the downside. However, with the major support seen at 1314 - 1312, gold prices could be seen pushing lower if the support at 1331 - 1327.50 is breached. To the upside, a move back above 1341 will invalidate the bearish bias. The daily chart shows two consecutive days of price closing with a doji pattern and an inside bar with a breakout below last Thursday's low at 1331.01 indicating further declines.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.