The dollar index may have more than 100 points of room to rise! Beware of another plunge in gold futures! Analysis of the latest technical outlook for gold, silver, euro, the dollar index, pound sterling, yen, and Australian dollar!

The dollar index held steady around 90.40 in the Asian session on Thursday, while gold futures remained under pressure, now trading around $1,839.50 an ounce. Kshitij Consultancy Service’s latest post on Thursday offers forward-looking analysis of future trends in gold futures, silver futures, the dollar index, euro/dollar, euro/yen, dollar/yen, pound/dollar and Aussie/dollar.

Gold futures

Gold futures fell sharply. We expect gold futures to remain bearish in the medium term with a target of $1760-1740 / oz. Until then, gold futures declines are likely to stop at $1,820-1,800 / oz for now. On the upside, we currently do not expect gold to break above $1,880 / oz. Overall, gold futures are likely to trade in a wide range of $1,800 – $1,880 / oz in the near term.

Silver futures

Silver futures also fell sharply and are likely to retest $24.35 an ounce. If it holds at $24.35 an ounce, expect silver to rise again from that level, or it could eventually fall to $22.

The dollar index

USD index starts rally and is likely to test 91/91.50 first. The view on the short-term direction of the dollar index is bullish.

EUR/USD

EUR/USD is falling again, with a high probability of a move towards 1.2050 in the short term. In the current correction, EURUSD could fall as low as 1.20.

EUR/JPY

EUR/JPY is likely to test support around 126/125.78, seen rallying from this area. Overall, EUR/JPY is likely to remain in a wide range of 125.78-127.50, with a break at either end of this range needed to clear further direction.

USD/Yen

USD/JPY has rebounded sharply from yesterday’s 103.52, but we will keep a close eye on near-term resistance around 104.20 and higher 104.40/50 to see if it breaks higher or retraces from current levels in the near term.

AUD/USD

AUD/USD has rebounded well and is likely to move towards 0.7850 or above in the medium term.

GBP/USD

GBP/USD eased, resistance at 1.37 looks unbreakable. Sterling/dollar is likely to trade in the 1.35-1.37 range as long as it stays below 1.37, before moving up to 1.38 or above.

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