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