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AUD/USD, EUR/USD and gold: trading ideas for this week

This week my focus is on two forex pairs beginning to show negative signs, AUD/USD and EUR/USD. I’ll also take a look at the likelihood of an upward break in gold.

The failure of AUD/USD to beat strong three-year trendline resistance at 7760/65, as we can see in the chart below, is a negative sign going forward.

On the daily chart (below) we also have confirmation of a top from the double top pattern formed over the past week. Further confirmation of the sell signal would come with a break below important support at 7620/10 and the pair could initially target the 100-day moving average at 7500/7490.

EUR/USD is hitting longer-term 100-week moving average resistance at 1.1310/1.1315, plus nine-month trendline resistance at 1.1350/55. Within this range there is a good chance the pair will top.

In fact, judging by yesterday’s short-term candles and the sharp pullback from 1.1322, this rejection may already mark a high for the three-week recovery. The first downside target for this week is 1.1185/75.

Gold is trading sideways as we hold within the one-month triangle pattern, allowing the overbought conditions to ease. This is likely to be a consolidation pattern, meaning we will eventually break high to continue the year’s bull trend. Of course a break above the year’s high at 1375 would be further bullish confirmation.

A breakout to the downside in the triangle, however, could target the July low of 1311/10 and, if we see further losses, I’m still looking for an excellent buying opportunity at 1300/1297.

Jason Sen
Technical Analyst & Trader

For more information, trading education and offers visit Intertrader

The content of this article is the personal opinion of the author and not Intertrader. The information and comments provided herein under no circumstances are to be considered an offer or solicitation to invest. Nothing herein should be construed as investment advice. The information provided is believed to be accurate at the date the information is produced.

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