(MENAFN - DailyFX) The US Dollar Index (DXY) broke out last week but may face some opposition to start next week. EURUSD and GBPUSD are both trading weak but don't be surprised if strength turns things around for a bit before selling off again. Gold is holding an important intermediate-term trend-line but still has headwinds keeping price tentatively bearish as a new set of sessions arrives.
Technical Highlights: DXY index in breakout territory but may get tested EURUSD and GBPUSD have bounce potential, but looking lower Gold holding onto trend-line support but has work to do See where our team of analysts see your favorite markets and currencies headed in the in the DailyFX Trading Forecasts.
DXY index in breakout territory but may get tested
The DXY broke out this week and with that I will run with the breakout for as long as price doesn't close back down below 9770. We may see a test, though, with some of the major currencies seeing a lift here soon. As written about yesterday regarding USD , the eventual target is for a move to around the 100-mark.
US Dollar Index (DXY) Daily Chart (in breakout territory) Find out where our analysts see the Dollarheading in the coming weeks based on both fundamental and technical factors Q2 Dollar Forecast
EURUSD and GBPUSD have bounce potential, but looking lower
The Euro has some underlying trend-line support in the vicinity to be mindful of and on that we could see a bit of a bounce. The tendency has been for EURUSD to make new lows and then bounce, so this combination does create upside risk. However, a drop below 11000 and things could really start rolling downhill.
Find out where our analysts see the Euro heading in the coming weeks based on both fundamental and technical factors Q2 Euro Forecast
EURUSD Daily Chart (has support lines to be aware of) GBPUSD put in a tiny reversal day yesterday after breaking the descending wedge pattern. A retest of the 12960-area makes for a sweet-spot from a risk/reward perspective to see another leg lower unfold into the 12700s or worse.
Find out where our analysts see the Pound heading in the coming weeks based on both fundamental and technical factors Q2 GBP Forecast
GBPUSD Daily Chart (12960 ideal spot for fresh shorts) Bonus Chart: GBPNZD Daily (Wedge becoming clear w/time) Gold holding onto trend-line support but has work to do
Gold is so far holding the August trend-line and doing so despite Dollar strength. But on its own technical merits gold still looks vulnerable. The trend since February is negative but to get things turned back lower in decisive fashion the August trend-line and 1266 need to break.
Find out where our analysts see Gold heading in the coming weeks based on both fundamental and technical factors Q2 Gold Forecast
Gold Daily Chart (August t-line, 1266 are key) Resources for Forex & CFD Traders
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---Written by Paul Robinson, Market Analyst
You can follow Paul on Twitter at @PaulRobinsonFX