Watchlist: A busy week ahead for forex and gold on the charts

  • There are a number of compelling opportunities for the week ahead according to recent price action developments.
  • The US dollar and global yield differentials will be the driving force.

In a quiet start to the week, it is a perfect time to scan the market for the possible trading opportunity and to prepare for probable outcomes from a technical perspective. 

First and foremost, the US dollar is one to monitor as it meets major support:

DXY, daily chart

Moreover, a wider measure of dollar positioning shows that the greenback posted a net short position of $5.711 billion this week, from net shorts of $7.747 billion the week before.

There is still plenty of appetite for the greenback out there, and this is a nice sanguine into the following gold price analysis.

Gold price analysis

Gold is one of the most compelling developments in recent sessions as per Chart of the Week: Gold on the verge of a significant correction

Gold, daily chart

The daily chart has seen a bullish close and there can be room to go on the upside yet. 

With that being said, the prior highs looking left have a confluence with a 50% mean reversion of the last few sessions of bullish closes. 

A deeper 62% retracement will meet with the 21-day EMA  and the neckline of the W-formation.

CAD/CHF daily chart

The reverse head and shoulders is a bullish pattern and there is a confluence of old support that meets a 50% mean reversion target. 

EUR/AUD daily chart

The price is correcting the daily bearish impulse and there is room to go to at least a 38.2% Fibonacci retracement.

A break there opens the risk of a deeper retracement to old support and prior highs which meet a 61.8% Fibo target. 

EUR/NZD daily chart

The bulls are in control and while there has been some deceleration in the correction, a break of the 21-EMA opens risk to test the prior lows and a deeper 50% mean reversion confluence.

This would be expected to act as resistance prior to the next leg to the downside to break the double bottom support. 

NZD/JPY daily chart

It has been a bearish open for the Kiwi specifically: NZD/USD Price Analysis: Bears take control in the open

This is jolted the NZD/JPY cross lower towards a support target which would be expected to hold and result in a fresh bullish impulse as follows:

AUD/USD daily chart 

AUD/USD is headed towards a significant 50% mean reversion where there is a confluence of the support structure.

Bears can take advantage of the price action from a lower time frame to determine an optimal entry point. 

On the flip side, the pair would be expected to hold at support and turn higher depending on developments in the commodity complex, US yields and the greenback over the forthcoming days and weeks ahead. 

GBP/USD daily chart 

As per the prior analysis, GBP/USD Price Analysis: Bears stepping up at critical resistance, as premature as it was, the outlook remains the same while the price fails to break higher and beyond the supply zone:

With that being said, while above the 21-EMA, there are prospects of a break to the upside and the hourly chart should be monitored for a bullish opportunity for a significant test of the daily resistance structure:

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Are you new to trading or have been trading for a while and you feel stuck?

Try with us!
Become Premium!

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD holds above 1.22 as the dollar slides across the board

EUR/USD has extended its gains and has topped 1.22, the highest since February. The safe-haven dollar is weakening amid the risk-on mood and as the Fed sticks to its dovish policy. US housing figures were mixed. The Fed's Bostic is set to speak later. 


GBP/USD extends corrective slide below 1.4200

GBP/USD trades around 1.4180, retreating from 1.4219, the highest since February. Britain's unemployment rate surprisingly dropped to 4.8% as the reopening continues. The dollar is on the back foot amid the upbeat market mood.


XAU/USD consolidates below $1870 amid risk-on mood

Gold price has entered a phase of upside consolidation, having faced rejection once again above $1870. The gold price looks unimpressed by the latest leg down in the US dollar, amid dovish Fed expectations.

Gold News

SEC attempts to block XRP holders from presenting evidence in Ripple case

The Securities & Exchange Commission filed another objection to the motion to intervene by XRP holders. The government agency argues that allowing third-party defendants into the case would “sow chaos” into the litigation.

Read more

Coinbase reveals intention to raise $1.25 billion following direct listing

Since its debut on the Nasdaq, Coinbase’s share price has merely collapsed. Given the recent weakness in its stock price, the leading cryptocurrency exchange is looking for a further cash injection. 

Read more