The main headline in the forex market this week is clear: the reversal on the U.S. dollar. Dollar bears tried their chances yesterday, but the USD weakness was contained very efficiently. In a few cases, that allowed sweet reversal patterns.
DXY
In the DXY there is a powerful bullish setup. It all starts with the inverse Head & Shoulders on the daily chart. The upswing from the last Friday, allowed the price to break the neckline of this formation, along with the major down trendline. Yesterday’s candle is a beautiful hammer and shows us a successful test of the resistances as the closest supports. Chances for a further rise are quite significant.
Gold
Stronger USD tends to mean weaker gold. Gold is still correcting the upswing that happened after the death of Iran's top general. The most recent technical development: a breakout of the lower line of the small flag formation, which shows us, that most probably, the downswing will be continued.
AUD/CHF
The last instrument is a bit exotic but recently, super technical. On the AUD/CHF we can spot three nice technical patterns in a row. The first one is a giant symmetric triangle, the second one is a medium flag and the third one is a tiny pennant. All those patterns ended with a bearish breakout and a drop. As long as we stay below the 0.669, the sentiment is negative.