Near-term Setups in USDJPY, USDCAD & AUDUSD- USDOLLAR Range in Focus
The BoJ, FOMC & RBNZ are on tap over the next 36hours and as such I’m primarily focused on JPY & USD crosses for now. Here are the setups we’ll be tracking into the releases - I’ll be giving a final update in the webinar tomorrow morning on SB Trade Desk.
The U.S. Dollar Index has set an impressive monthly opening range between key support at 11850 & Fibonacci resistance at 12018 – we’ll be looking for a break of this key range to validate a near-term directional bias heading into the FOMC rate decision & subsequent presser with Chair Jannet Yellen.
USDJPY- The potential for a washout here is significant as speculative retail positioning continues to build- approaching extremes not seen since the lows in price were registered back in August. This is USDJPY so expect volatility – We’ll be on the lookout for a move into key support levels just lower for a possible exhaustion / long-entries. I highlighted this setup in today’s Scalp Report.
USDCAD- Loonie remains of interest heading into tomorrow as USDCAD continues to trade within the ascending median-line formation highlighted last week. Near-term support rests with the weekly opening-range low at 1.3135 with our near-term bullish invalidation now raised to 1.3085. A breach above the 200-day moving average at 1.3255 would be needed to fuel the next leg higher.
AUDUSD- We’ve been talking about the long-side of the Aussie for a few days now and while ultimately I do still want to be long, heading into tomorrow the risk remains for a drop into key structural support before resumption of the broader uptrend. Interim support rests at 7500 with our broader bullish invalidation level steady at 61.8% retracement of the May advance at 7380. A breach above 7610 would be needed to validate a near-term breakout.
For additional insights, including analysis of intraday, daily, weekly and monthly charts, member only webinars, Twitter updates, and specific trade plans, subscribe to SB Trade Desk (click here for more info).
Looking for more trade ideas? Review DailyFX’s 2016 3Q Projections
---Written by Michael Boutros, Currency Strategist with DailyFX
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)
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.