US Dollar Looks Bullish, Gold Could Test 1300 On Yellen
ORBEX | Aug 26, 2016 05:08AM ET
The technical outlook for the US dollar, hints to a near term bullish strength, validated by the bearish outlook in gold, GBP/USD, and EUR/USD. While USD/JPY has been trading flat, we could expect theprice to test 102 and 104 in the near term. Today's US GDP revisions and Janet Yellen's speech at the Jackson Hole symposium are the main event risks for the day.
EUR/USD Daily Analysis:
EUR/USD (1.1291): EUR/USD is currently attempting to retest the price zone near 1.1300 with prices trading within Thursday's range of high and low forming an inside bar. A potential breakout from here is quite likely as a result. On the 4-hour chart, after prices broke down from the rising median line, we see a retracement back to the breakout level which comes in near 1.1300. While the bearish divergence remains in play, the correction in EUR/USD remains short lived as a retest to 1.1200 remains on the cards.
USD/JPY Daily Analysis
USD/JPY (100.46): USD/JPY remains flat for another day, but this could soon be changing. The price zone near 100.50 - 100.00 remains of immediate interest which could give way for theprice to test 102.00 which forms the initial resistance level. The re-adjusted pattern on the 4-hour time frame shows the descending triangle which has broken to the upside, but being capped near 100.50 - 100.00. To the downside, a daily close below 100.00 could invalidate this pattern and expose USD/JPY to further downside.
GBP/USD Daily Analysis
GBP/USD (1.3209): GBP/USD is trading near the 1.3200 with the daily Stochastics showing a hidden bearish divergence on the lower high in prices and a higher high on the oscillator. This hints to a potential downside in GBP/USD towards 1.3000. On the 4-hour chart, GBP/USD failed to build on its gains above 1.3200 - 1.31700 and with price breakout from the rising median line, we can expect to see a break down towards 1.3000 - 1.2950 in the event that the resistance gives way. Watch for a potential lower high above 1.3200 for initial clues ahead of the dip to 1.3000.
Get The News You Want
Gold Daily Analysis
XAU/USD (1324.60): Gold prices fell to 1322 region yesterday after the hourly chart shows a break down in the descending triangle pattern. The declines marked a completion to 161.8% of the measured move, and the current pullback could see a retest of the broken support near 1335 - 1332. On the 4-hour chart, 1327.50 which previously served as support could now be tested for resistance. However, expect further upside to 1335 - 1332 if price forms a higher low. The correction is likely to stall near this level ahead of further declines to 1300.00.
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.