Last week we saw some nice moves in the direction of a stronger U.S. dollar, which could stay in play for this week as well, but before USD goes higher or EUR and CHF falls deeper, we need a corrective retracement on the intraday basis.
We have seen some volatility and spikes during the holiday period on the FX board, but if we look at the daily chart of the U.S. Dollar Index we can see that the price has not gone far lately. That could change very quickly.
Gold is trading nicely lower since the start of September after breaking through the rising trendline of a corrective channel. We knew at the time that it was an important signal for a change in trend.
Gold reversed sharply to the downside at the start of September, through the rising trend line of a corrective channel. As we know, that's an important signal for a change in trend, which means that bearish price action is now back in view.
The British pound is at the highs against the U.S. dollar, now above the wave the trendline connected from 2009 highs but still below 1.6744, which is a triangle invalidation level from a weekly chart.
The Australian dollar has extended its weakness against the U.S. dollar in the past few trading days, but decline from the high still can be considered as a contra trend corrective movement, but more complex than on the first place.