Technical Outlook:

  • EUR/USD looks set to keep on rising
  • Gold postured for higher prices too

EUR/USD has been a bit choppy, but nevertheless it keeps on heading higher towards its best levels since the March spike. The change in character the past month suggests the rally could even grow legs at some point. The change in character in reference, is the fact that after the June rally the Euro didn’t fall apart as it has done after every rally since early 2018. But before EUR/USD can string together a sizable rally the March high at 11495 will need to be exceeded, then the trend-line from 2008 up near 11700. For now the bias is bullish until we see pervasive price action or a strong rejection at one of the thresholds mentioned above.

EUR/USD Daily Chart (steadily heading higher)

EUR/USD daily chart

EUR/USD Chart by TradingView

Gold price is treading water around the 1800-mark where three peaks were created in 2011/12 following the bull market high of 2011. But despite this major threshold, gold is holding up well in the absence of any major selling pressure. In the near-term, there is a nice upward trajectory that keeps the metal moving higher. As long as the July 14 low at 1790 holds, then so should the upward bias. A strong push into the 1800s could see gold start to rise towards the 2011 high at 1920. A break of 1790 (& trend-line support) would be reason for turning cautious, if not outright bearish.

Gold Price Daily Chart (2011/12 1800-area)

Gold price daily chart

Gold Price Chart by TradingView

Gold price 4-hr Chart (treading sideways, 1790 key)

Gold price 4-hr chart

Gold Price Chart by TradingView

For all the charts we looked at, check out the video above…

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—Written by Paul Robinson, Market Analyst

You can follow Paul on Twitter at @PaulRobinsonFX





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