Technical Analysis

Will Dollar Strength Continue?

XAU/USD

The Gold 30 Minute Chart is showing something very interesting today, as the commodity stands at the price level of $1,122.27. Even though the price of Gold has risen dramatically since about midnight, this bullish run may be running out of steam. Moreover, the chart signals that Gold has been unable to surpass the $1,125 mark. The question now is can Gold yet again make another remarkable bullish move during the present trading day? Despite many forex traders actually profiting from the recent bullish run, some still remain cautious as to what today holds for the future volatility of Gold. With regards to the current support and resistance levels, the latest support levels lie at $1,115.03, $1,115.59, $1,116.82, and the latest resistance levels are $1,124.78 and $1,128.08. If Gold does indeed breach the $1,124.78 resistance level in the coming hours, then I feel that the possibility of a more dynamic bullish run may be on the cards!

EUR/USD

The pair continues to catch the attention of fx traders around the world. One of the main reasons for this may be the fundamental and technical dynamics driving the pair. What is more, the volatility and sometimes even the unpredictability make this pair so interesting to trade and follow. The current price of the EUR/USD cross is $1.4353, as it is currently going through a bearish trend. If we look at the EUR/USD 2 Hour Chart, we see that overall, the pair has been experiencing much bearishness during the past day of trading. Therefore, the strength of the Dollar seems quite remarkable, as many fx traders failed to foresee the strength that the greenback could uphold. According to the chart, the current levels of support lie at $1.4257 and $1.4273, and the current levels of resistance are $1.4454 and $1.4483. The question now is can the EUR/USD bearish run continue into midday trading? We will have to wait and see!

GBP/USD

The GBP/USD Daily Chart illustrates just how volatile the pair has been trading over the past several weeks. On one hand, it can be said that this volatility is partially owed to the low trading volume and illiquid markets. However, on the other hand, a number of large financial institutions and forex traders have continued to drive the forex market. During these interesting price swings, it is common for fx traders to buy on lows and sell on highs, and buy on highs and sell on lows. In the previous two trading days, we saw the GBP/USD currency cross diving, as the GBP weakened and USD strengthened. A number of analysts expect this trend to continue. Nevertheless, most people have different views about the future direction of this eye-catching pair! The current support levels are $1.5711 and $1.5832, and the current resistance levels are $1.6239 and $1.6411.

USD/JPY

In the past week of trading, the USD/JPY pair has been range trading between the 91.00 Yen and 93.25 Yen levels. The USD/JPY 2 Hour Chart shows some very interesting behavior with regards to the price movement of this currency cross. Taking out the present candle on the chart, the previous 3 candles indicate a recent notable upward movement for the pair. This may actually turn out to lend support for the USD/JPY currency cross as trading on the forex market continues to unfold. The present levels of support lie at 91.26 Yen and 91.51 Yen, and the current level of resistance is at about 93.20 Yen. At the moment, the market price of the pair is 92.68 Yen, and if in the coming day of trading, the pair actually breaches the 93.20 Yen resistance level, then the possibility of the pair trading at levels such as 95.00 Yen may be more of a realistic prospect.