The dollar index may have 120 points more room to rise! Beware of gold futures crash risk!

The dollar index was steady near 90.30 in the Asian session on Friday, while gold futures held steady at around $1,852 an ounce.

Gold futures

Gold futures appear to be stuck in a $1,820-1,860 / oz range and could stay there for a while before moving towards either end of the range. It should be noted that the uptrend at $1,880 / oz is an important resistance level, while gold futures look more likely to eventually fall below $1,820 / oz.

Silver futures

Silver futures are also likely to trade in a $26- $24 / oz range for now before giving a clear direction.

The dollar index

The DXY remains above 89, but shows no signs of a sharp break above 91. As mentioned earlier, we expect the DXY to rise to 91.00-91.50 in the near term before falling back again. For further progress towards 93-94, the DXY needs to break above 92. In the short term, we will wait for the USDX to break through 91.

EUR/USD

EUR/USD needs to stay below 1.2150 to reinforce the possibility of a move towards 1.2050. Watch the price action of EUR/USD near the current level.

EUR/JPY

EUR/JPY has fallen and could fall further to 125.78. Overall, EUR/JPY is likely to remain in a wide range of 125.78-127.50 for now.

USD/Yen

USDJPY is likely to remain below short-term resistance at 104.50 and eventually fall towards 103/102.50 in the medium term.

AUD/USD

The short term outlook for AUD/USD is bullish, expected to rise towards 0.78/0.80. For now, AUD/USD is likely to maintain its near-term uptrend.

GBP/USD

The outlook for GBP/USD is bullish, with a move to 1.38 first and then likely to extend to 1.40 in the longer term. The view on GBP/USD remains bullish for now.

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