Near-term Setups in AUDUSD, NZDUSD & USDOLLAR
AUDUSD- As discussed in today’s webinar, I’m still holding a portion of the long with stops now raised to the U.S. session low. Ideally, Aussie rallies into structural resistance just higher where I’d be looking for favorable short-entries targeting a key support confluence at down into 7550.
The focus is on the 7200-7300 range with the broader risk weighted to the downside while below the July high-day close at 7296. Look for a break of this range this week with a move lower eyeing initial targets at 7148, & 7099. A close above 7300 shifts the focus towards a more significant resistance confluence at 7380/92. I’m also looking to play Kiwi weakness by way of GBPNZD – a trade we’re currently tracking on SB.
USDOLLAR 120min / Daily
The U.S. Dollar Index has been trading within the confines of a descending channel formation off the monthly high with price responding to near-term confluence resistance today, just ahead of the monthly open at 11936. The risk is lower while below this level with key near-term Fibonacci support seen at 11849/53. From a trading standpoint, I would be looking to fade strength while below the monthly open with a close below last week’s low needed to shift the focus towards the 2016 low-day close at 11783. Keep in mind Fed Chair Yellen is set to speak at Jackson Hole on Friday and is likely to charge plenty of USD volatility. I’ll update this setup on SB if something materializes.
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---Written by Michael Boutros, Currency Strategist with DailyFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.