The Euro broke the important 11300 level yesterday and with it opens up room for more weakness. USD/JPY is looking to make a push on an area it has had a difficult time with since last year, how will it respond on another attempt to break through? EUR/CAD wedge gaining appeal as it forms within the context of a generally weak trend. Gold is pushing down on trend support off the August low, how it reacts here could be important for the foreseeable future.
- EUR/USD 11300 break opens up for more losses
- USD/JPY has big resistance just ahead in mid-11400s
- EUR/CAD wedge coming to light in context of weak trend
- Gold price trading on important trend support
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EUR/USD 11300 break opens up for more losses
In the weekly Euro technical forecast I made note of the 11300 line and its importance given its significance starting back on the night of the U.S. Presidential election in 2016. Yesterday’s clean break has EUR/USD pressed on an underside trend-line, but giving the 11300 break more weight and with the underside trend-line also pointing lower it is not viewed as significant support. The next swing level beneath the t-line is around 11118, a swing level from last year. Overall, the burden of proof still weighs heavily on longs.
EUR/USD Daily Chart (underside t-line support at the moment)
See what key fundamental and technical factors are expected to drive EUR/USD through year-end in the Q4 Euro Forecast
USD/JPY has big resistance just ahead in mid-11400s
USD/JPY is grinding its way back towards a big test of a formidable zone of resistance. The area around 11430/74 has been in play since May of last year. The powerful rejection last month validated its importance in the shorter-term. Another rejection will favor another pullback while a firm break through will have momentum favoring a move higher. Could be an important test this week.
USD/JPY daily chart (big resistance)
EUR/CAD wedge coming to light in context of weak trend
EUR/CAD continues to be on the radar as a short. The wedging price action within the confines of the downtrend since March suggests a breakdown could take shape at some point soon, but there may be a bit more coiling up before that happens. In the event of another leg lower, multi-year trend-lines in the vicinity of 14500/300 will be targeted.
EUR/CAD Daily Chart (Wedge forming)
Gold price trading on important trend support
Gold is testing the trend-line (lower parallel) off the August low. It’s a big spot to hold if gold is to at least continue its tepid trend higher, although it looks like a corrective move so far from the sell-off leading up to the August low. A breakdown will have 1183/82 or worse in focus.
See what key fundamental and technical factors are expected to drive Gold through year-end in the Q4 Gold Forecast
Gold Daily Chart (Trading at channel support)
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