Chart Bites: EURUSD breaks above uptrend channel, thanks to ECB
- EURUSD has now broken above its uptrend channel on a more hawkish ECB.
- Following the "fat Finger" incident, gold appears to be making a comeback
- USDJPY gains may be capped by trendline resistance
By Edmund Liu
The $&P500 has now broken below its rising wedge. The price target for this break is 2,400.
EURUSD gains ground
The EURUSD has now broken above its uptrend channel on a more hawkish ECB. The upper resistance line of the uptrend channel now becomes a support for buying into the rally.
Following the “death cross“ we had on the DXY last week, the US dollar index has now moved lower as predicted by the technicals.
The focus is now on the 9 November 2016 (Trump victory) low of 95.9.
Gold makes a comeback
Following the "fat finger" incident for gold on Monday 26 June, the precious metal appears to be making a comeback, as it continues to bounce off its 200 day moving average:
EURGBP breaks out of triangle
EURGBP continues to break out of its triangle on the weekly charts, possibly a candidate for a long term buy.
USDJPY makes gains
USDJPY has now broken above the Ichimoko clouds, but gains may be capped by trendline resistance.
Stochastics are overbought indicating possible downside momentum ahead:
Possible AUDNZD upside
AUDNZD indicating bullish divergence on the RSI indicator, while MACD indicates upside momentum.
GBPUSD has reclaimed the 1.27 inverse head and shoulders neckline, as the MACD has a bullish crossover today.
USDCAD breaks below support
After rejecting the 200 day moving average, USDCAD is now breaking below multi-year trendline support, while the weekly charts indicate the next level of support at 1.28.
Crude oil front month futures
Support line from the descending broadening wedge pattern for crude appears to be holding up.
Source: all charts SaxoTrader. Create your own charts with SaxoTrader; click here to learn more
-- Edited by Robert Ryan
Edmund Liu is a trader on TradingFloor.com.
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