Talking Points
- USDOLLAR rebound underway- Rally eyeing near-term resistance
- Updated targets & invalidation levels
- Event Risk on Tap This Week
USDOLLAR Daily
Technical Outlook: The Dow Jones FXCM U.S. Dollar Index (Ticker USDOLLAR) broke through downtrend resistance at the upper median-line parrallel extending off the monthly high with the rally now eyeing resistance at the 2015 high-day close at 12204. The trade remains constructive while above 12146 (bullish invalidation) with a breach of the highs targeting the December high at 12212 & the yearly high at 12219. Broader channel resistance is eyed at ~12280/90.
Note that the daily RSI is attempting to break above a resistance trigger extending off the November high and suggests that the momentum profile remains constructrive. A break below 12146 puts us neutreal with a break sub-12123 (April high-day close) needed to put the short-side back into focus targeting 12071. As we approach the holidays and thus illiquid markets, it’s worth reviewing principles that help protect your capital. We call these principles the "Traits of Successful Traders.”
USDOLLAR 30min
Notes: The index has continued to trade within the confines of a well-defined ascending median-line formation with a breach of the weekly opening-range highs / Fibonacci resistance at 12131 shifting the focus back to the topside. We’ve been tracking this setup on SB Trade Desk all week and although the broader bias remains weighted to the topside, the dollar remains at risk near-term while below the 2015 high-day close at 12204.
Interim support rests at 12171 backed by our near-term bullish invalidation level at 12146. Event risk is limited heading into the close of the session with U.S. 3Q GDP, Personal Consumption / Income / Spending and Durable Goods Orders highlighting next week’s shortened holiday docket.
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Relevant Data Releases Next Week
Other Setups in Play:
- Webinar: All Eyes on FOMC- US Dollar Hangs in the Balance
- GBP/USD Rebound Targets Major Resistance Ahead of BoE
- GBP/NZD Rebound in Jeopardy as RBNZ/BOE Rate Decisions Loom
- Webinar: USD Setups in Focus as NFP Clears the Way for Fed Hike
- Dual Jobs Report to Threaten USD/CAD Consolidation Range
---Written by Michael Boutros, Currency Strategist with DailyFX
Follow Michaelon Twitter @MBForex contact him at mboutros@dailyfx.com or ClickHere to be added to his email distribution list
Join Michael for Live Scalping Webinars on Mondays on DailyFX and Tuesday, Wednesday & Thursday’s on SB Trade Desk at 12:30 GMT (8:30ET)
As we approach the holidays and thus illiquid markets, it's worth reviewing principles that help protect your capital. We call these principles the "Traits of Successful Traders.”
