Last week I talked about the European currencies, gold and AUD having excellent growth potential. However, the signs of growth could be seen only at the beginning of the week. Shortly afterwards everything began to digest the preceding growth and pretty much turned into the range.
What draws my attention is a possible comeback of the USD.
After a downtrend, DXY has been ranging for a while. Then it tried to continue the downtrend but failed to make a new low and closed the week within the range. Can we expect a significant further correction of the USD? Or even a new uptrend after the breakout up from the current range? Let's be ready for that next week!
I don't see any pairs showing the price action hints of trend continuation for now. Instead, we may see correctional moves in EUR and GBP. You can see GBPUSD and EURUSD, showing the vivid bearish engulfing patterns while being near the long-term resistance area.
EURUSD failed to hold above 1.1900, which also a good reason to retrace down at least to 1.1600-1.1700 (down the border of the current range and the long term broken trendline that has turned into support)
AUD also seems like it needs to digest its recent gains. AUDUSD, in addition to bearish engulfing patterns, made the failed breakout on August 19 while being near the long-term resistance.
Overall, everything is ranging currently. Patience is a must-have here!
What draws my attention is a possible comeback of the USD.
After a downtrend, DXY has been ranging for a while. Then it tried to continue the downtrend but failed to make a new low and closed the week within the range. Can we expect a significant further correction of the USD? Or even a new uptrend after the breakout up from the current range? Let's be ready for that next week!
I don't see any pairs showing the price action hints of trend continuation for now. Instead, we may see correctional moves in EUR and GBP. You can see GBPUSD and EURUSD, showing the vivid bearish engulfing patterns while being near the long-term resistance area.
EURUSD failed to hold above 1.1900, which also a good reason to retrace down at least to 1.1600-1.1700 (down the border of the current range and the long term broken trendline that has turned into support)
AUD also seems like it needs to digest its recent gains. AUDUSD, in addition to bearish engulfing patterns, made the failed breakout on August 19 while being near the long-term resistance.
Overall, everything is ranging currently. Patience is a must-have here!
