Near-term Setups in DXY, AUD/USD, EUR/USD, NZD/USD & EUR/CAD
16 Mar 2017 18:57, GMTAUD/USD 120min
Weaker than expected Australian employment numbers sparked a pullback in Aussie after Wednesday’s stunning 1.98% post-FOMC advance. Interim support now at the monthly open at 7656 with our broader focus remains weighted to the topside while above the 76-handle. A breach higher eyes subsequent topside objectives at 7735 & the November high at 7778. A break sub 7540 would be needed to re-assert a short-bias for the Aussie.
EURUSD: The focus is on a pullback from near-term structural resistance around 1.0740/60 with our broader outlook still weighted to the topside while above 1.0640. I highlighted this setup in today’s scalp report.
DXY: The break below the 101-handle noted ahead of the FOMC interest rate decision yesterday has already taken out initial targets at 100.39 – Looking for a near-term recovery off these levels but ultimately the outlook remains weighted to the downside sub-101 with a break lower eyeing key support into the 2015 High-day close at 99.95-100.02.
NZDUSD: Picture perfect! Kiwi rallied through the range highs of a key zone highlighted on Tuesday with the rally reversing sharply off our bearish invalidation level at 7036/45. The levels / outlook remain unchanged from earlier this week with a break back below 6937 needed to validate resumption of the broader downtrend.
EURCAD: The anticipated pullback in EURCAD reacted to initial support at 1.4248/68 where the pair mounted a counter-offensive today. Levels / Outlook remain unchanged from earlier in the week with a breach through 1.4428/50 still needed to mark a more meaningful breakout in the pair. Near-term bullish invalidation steady at 1.4175-1.42.
Looking for trade ideas? Review DailyFX’s 2017 1Q Projections
---Written by Michael Boutros, Currency Strategist with DailyFX
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