Today was a quiet day as the forex market consolidated recent USD-strength. Let’s take a look at the AUD/USD NZD/USD, and Gold (XAU/USD) charts for some technical set ups, for the rest of this week and the upcoming one.
AUD/USD looks like it is completing a head and shoulders pattern. We should anticipate some short-term bearish outlook, though it may be premature to call for a reversal of its 2014-uptrend which started in late January. NZD/USD has been falling, and it could be attributed to a steep decline in dairy prices in in July. We saw a similar reaction in March when dairy prices dipped, but the market continued to be bullish after a period of consolidation. So for now, we anticipate NZD/USD going into a sideways market with bullish bias. Gold is pulling back up after a few sessions of sharply bearish price action. If the bearish price action is to extend, the current rally should find resistance in the 1325-1330 area. Otherwise the focus can shift back toward a neutral-bullish mode.
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