Dollar trades mixed. Draghi's speech awaited
Daily Forex Market Preview, 26/09/2016
The US dollar is trading mixed in early Asian trading as a rather slow day will see speeches from central bank governors including Kuroda, SNB's Jordan and Mario Draghi. US new home sales data is on the pipeline later today followed by Fed Member, Tarullo's speech. On the political front, the first US presidential debate will see Trump facing off Clinton.
EURUSD Daily Analysis
EURUSD (1.1225): EURUSD remains consolidating near the neckline of the head and shoulders pattern on the daily chart, but price remains at risk of a downside move to test 1.1100 support. On the 4-hour chart, price action has been moving into a rising wedge pattern with prices briefly testing the minor resistance at 1.1250 - 1.1240. A breakout from this rising wedge could see EURUSD decline towards 1.1200 support followed by 1.1151.
GBPUSD Daily Analysis
GBPUSD (1.2978): GBPUSD pushed lower on Friday and invalidated the potential inverse head and shoulders pattern as prices fell back to September 20 lows. Still, with no significant lower low being formed and prices easing back following the break of the median line, GBPUSD could see some upside. A close above 1.3000 is essential to keep the bullish view intact. To the upside, initial resistance at 1.3067 will be challenged. A successful breakout to the upside could see the cable extend gains towards 1.3200 followed by the next major resistance at 1.3282 - 1.3294.
Gold Daily Analysis
XAUUSD (1333.31): Gold prices have been consolidating above 1331 - 1327.50 support last week by following the doji pattern and the subsequent local lows, prices consolidated into a head and shoulders pattern with the neckline support at 1336.15 being breached. Further declines can be seen towards 1324 - 1325 which will be the minimum target to the downside. However, with the major support seen at 1314 - 1312, gold prices could be seen pushing lower if the support at 1331 - 1327.50 is breached. To the upside, a move back above 1341 will invalidate the bearish bias. The daily chart shows two consecutive days of price closing with a doji pattern and an inside bar with a breakout below last Thursday's low at 1331.01 indicating further declines.