Full hawkish Dudley boosted the USD yesterday, but apart from that market looks rather sleepy. Unfortunately, many instruments are locked inside the mid-term sideways trends. Luckily, FX is packed with instruments and we still can find something interesting.
First, let’s take a look at the EURJPY. Here, we have a flag in an uptrend, which is bullish. We also defended the mid-term horizontal support at 122.8, which makes this positive outlook even stronger.
Another one is the EURUSD, where the price broke the first out of the four important supports. One can say that it is not so bad yet, but the fact that we are close to the monthly lows is not helping here. As long as we stay above, the sentiment is positive, but chances of a bearish breakout are rising.
Gold is creating a right shoulder, which could be catastrophic for buyers. Currently we are defending the mid-term up trend line but the neckline is not far away. The situation is getting a bit dangerous for the bulls and if they want to keep the positive sentiment (kind of) alive, they should act now.