In today’s Forex Forecas, we offer the technical outlook for AUD/USD, EUR/USD, GBP/USD and Gold prices, with Craig Erlam, Senior Market Analyst for Oanda.
AUD/USD: favouring the downside
Erlam maintains a bearish bias on the AUD/USD, explaining that the Aussie remains in its long-term bearish trend. Breaking above 0.73 will signal a big fundamental change.
EUR/USD: 1.08 key for a parity view
Erlam says that EUR/USD is back at 1.09 levels, having broken below the previous range. On the key levels, he suggest 1.08 is key for further downside, breaking below which will re-ignite parity talks.
He further adds that people are already buying into a Fed rate hike, and hence the cross has failed to see new highs last week.
Gold: Heading back to lower levels
On gold prices, Erlam explains that the previous metal saw a selloff on the back of the Fed rate hike view, with Gold sharing a strong correlation with interest rate expectations.
The yellow metal broke below the ascending trendline, and exhibits a strong bearish trend, heading back towards $1100 levels, says Erlam.
Crude Oil: Erlam remains bearish on Crude oil, noting that the supply side remains the dominant factor in the market.