Dollar Majors & Gold at Key Technical Crossroads
US Dollar Majors, Commodities & Stocks Technical Outlook
The US dollar majors and major assets are facing key technical levels as the week begins. The Euro (EUR/USD) is testing confluent uptrend support after rebounding off a region defined by the 38.2% retracement of the June advance and the May/January swing lows at 1.1534/78. A close above 1.1630 would fuel the next leg of the advance, while losses below 1.1563 would limit further upside.
The Australian Dollar (AUD/USD) marked an outside daily-reversal off confluent resistance on Friday and is trading just above support into the monthly close. A topside breach above 7214 would be needed to mark resumption of the uptrend towards the upper parallel, while a break below the median-line would threaten a larger pullback within the monthly uptrend.
Gold (XAU/USD) broke below the August uptrend after Fed Chair Warsh's hawkish remarks at the Jackson Hole World Economic Symposium. The decline has extended more than 6.3% off the monthly high, with key support now resting with the objective yearly open and the 50% retracement at 4319/20.
Event risk this week includes BoC & RBNZ rate decisions, ADP employment & Non-Farm Payrolls, which could impact market sentiment and influence these technical levels.