Daryl Guppy is an independent technical analyst who appears frequently on CNBC Asia. He runs training, analysis and resource workshops for retail and professional financial market traders involved in stocks, CFDs, warrants, derivatives, futures and commodities in China, Malaysia, Singapore and Australia. He has his own trading company, guppytraders.com.
There is a reasonable probability the U.S. dollar index will fall below 74.50 and retest the lower edge of the base of the symmetrical triangle pattern near 72.50. Traders will look for a consolidation pattern to develop between 72.50 and 74.50.
Any fall in the euro-dollar below $1.36 has a high probability of cascading into a fall to $1.29, which in turn, will have a high probability of quickly falling into the consolidation support area with a potential downside target near $1.24.
Will Friday's meeting at Jackson Hole dig markets deeper into a hole, or get the U.S. out of one? The early signs will come from the Nasdaq, rather than the Dow and the index could tumble if the results of the meeting disappoint.
The long and steady decline in the Australian dollar from $0.93 to $0.69 has paused and developed a significant reversal pattern.
Similarities in the patterns on the gold and silver charts mean the silver price follows the behavior of the gold price, says Daryl Guppy.
The dollar remained relatively calm while investors rushed into the safety of gold after British voters' decision to leave the EU.
Britain as an unwilling partner is just as devastating as Britain leaving, so a stay result has a similar impact to an exit result.
Daryl Guppy is an independent technical analyst who appears frequently on CNBC Asia.