The British bank holiday and the US Memorial Day holiday, the British stock market and the US stock market closed, the market trading was relatively light. In the foreign exchange market, the US dollar index’s further rebound is hindered by the 100 mark. In the short term, we can see whether it can hold the 20-day moving average at 99.70.
Dailyfx pointed out that the short-term direction of the US dollar is unknown, and the short-term prospects of the G10 currency are equally difficult to predict. Whether the weak rebound of AUD / USD can break through 0.6560 will be the key to the trend. The pound / USD mainly depends on whether it can stand at 1.2160. The support of the EUR / USD by the 20-day moving average increases the possibility of a rebound rebound. Near 108 below.
Euro: The daily chart shows that the further decline of the EUR / USD hit the 20-day moving average of 1.0870 and rebounded. This level has played a key support or resistance role for more than a month. The short-term stability of this level increases the chance of stopping the rebound.
If the rebound continues in the short-term, the initial resistance will focus on 1.0910, and the effective resistance will be further at 1.0950 after the effective break. Continued breakthrough may challenge the key resistance of 1.10 again. Conversely, if the exchange rate effectively falls below 1.0870, it means further downside, and may point to 1.0800 and 1.0770 levels.
GBP: The daily chart shows that GBP / USD temporarily stopped falling below the 1.2160 first-line support during the day, but last week ’s rebound confirmed 1.2250 first-line support. Big.
If it effectively breaks through 1.2160, it will open space for 1.2100 and 1.20. If it continues to rebound, focus on 1.2200 and 1.2250 resistance.
Japanese Yen: The daily chart shows that USD / JPY continued to sort around 108.00 below yesterday. On the downside, initial support concerns 107.50, and further support in the Bollinger Bands (20-day moving average 107.00). If it goes up, it will continue to focus on the first-line resistance of 108.0, but even if it breaks above this level, it will soon face a severe test of the 200-day moving average resistance.
AUD: The daily chart shows that the fall after the AUD / USD falsely breaks through 0.6560 has begun to stabilize, which keeps the uptrend channel since April intact, with a short-term focus on whether the exchange rate can break the 0.6560 line.
If it can effectively break above 0.6560, then the resistance to further increase is concerned with last week’s high of 0.6516 and the 200-day moving average of 0.6660. If the short-term down, continue to pay attention to the upward support line and the support area formed by the 20-day moving average, a break will face further downside risks.
Gold: Dailyfx said that the price of gold may lose momentum as it approaches $ 1800 per ounce. However, note that any retracement above the $ 1600 / oz mark may be a corrective trend.
As the long-term resistance is approached, that is, close to the $ 1800 / oz position, the rise in gold prices may be losing momentum. Relative Strength Index (RSI) peak and divergence have increased, suggesting that price action is weakening, which may open the door for the subsequent “yield” and reversal of the gold price.
Overall, before the long-term upward trend is challenged, any reversal of the downward trend still has a long way to go. To do this, bears may need to drive down the price to break the $ 1600 / oz mark. If the inflection point level below 1563.00 is subsequently broken, then the upward trend line support since August 2018 will enter the field of attention.
Looking at the daily chart, the price of gold is currently struggling to seek further momentum after breaking out of a bullish symmetrical triangle candlestick pattern. It is worth noting that the RSI (Relative Strength Index) top divergence also shows that the current buying pressure is weakening.
On the downside, gold breaking below the initial level of 1715.15, which is less supportive, may be aimed at a more solid turning point level of 1679.81. If the gold price closes below the daily target, it may pave the way for the subsequent challenge of the 38.2% Fibonacci retracement level of 1645.40. If you want to eliminate the top pressure, you may need to close above the May shock high of 1765.30.