Euro Long-Term Outlook Bullish While Gold Poised for Gains After Consolidation

Deep News
1 hour ago

On September 1st, the US dollar index declined to the 98.60 region as analyzed on August 17th, and last week it rebounded upward as anticipated, with the monthly chart closing as a small bearish candle. From a technical perspective, the dollar index is likely to continue its range-bound consolidation in September, with the long-term outlook remaining bearish, suggesting a timeline extending to around October. The exact highs for September and October remain uncertain, but the strategy is to expect consolidation in September followed by a short opportunity on the dollar index in October. This month, the initial recommendation is to go long on the dollar index, with an operational suggestion to buy within the 99.40-99.00 region, a stop loss at 98.50, and targets initially set at 100.40 and 100.80, extending toward 102.30 if momentum is strong. These framework strategies are for reference only, with risk borne by the trader, and it is essential to manage position sizes and adhere strictly to stop losses.

The euro reached a high of 1.1710 in August before pulling back last week, with the monthly chart closing as a small bullish candle. Based on the charts, the euro remains within a wedge consolidation pattern, with a long-term bullish bias and a target near 1.2700. September is likely to see continued range-bound trading, but for the long term, it is advisable to wait for a dip before initiating long positions, with key support levels at 1.1470 and 1.1340. Early this month, the euro is more likely to trend lower below 1.1670, with an operational suggestion to short within the 1.1630-1.1650 region, a stop loss at 1.1695, and targets at 1.1540, 1.1490, and ultimately 1.1470. Position sizing and stop losses should be carefully managed, and these framework strategies are for reference only, with risk borne by the trader.

Gold experienced two consolidation phases in August before a sharp rally, peaking near 4700. From the charts, the downward correction before month-end was as expected, with September likely to see consolidation and October more probable for another upward push, with the swing target still near 5000. Key support levels to watch are 4270 and 4220, and as long as prices remain above the 4220 zone, the medium-to-long-term bullish view on gold remains unchanged. However, whether gold will retrace to such lows is uncertain and must be assessed step by step, with the initial focus in September on the 4270 support level. This week, gold is likely to continue lower after consolidation, with a focus on the 4550 to 4350 range before a probable further decline toward 4270. Therefore, the next swing long opportunity should focus on the 4270 region, observing whether the candlestick patterns show any signals. This framework is for reference only, with risk borne by the trader.

Silver follows a similar overall framework to gold, with early September expected to see a downward consolidation. The strong resistance above is at 68.60, with a higher probability of declining below this level, and key support at 64 and 62.80. The medium-term outlook remains one of upward consolidation. These framework strategies are for reference only, with risk borne by the trader.

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