Skip to Content
News & Analysis at your fingertips.
Free Trading Guides
Please try again

Live Webinar Events


Economic Calendar Events


Notify me about

Live Webinar Events
Economic Calendar Events






More View More
Near-term Setups in AUD/USD, EUR/USD & DXY

Near-term Setups in AUD/USD, EUR/USD & DXY

AUDUSD 120min

AUD/USD 120min Chart

Earlier in the week we highlighted a key multi-month resistance range in AUDUSD at 7735/56. Aussie registered a high at 7749 before reversing sharply yesterday with the decline rebounding off near-term support at 7651/56. A newly identified pitchfork extending off the thighs keeps the immediate focus lower while below the median-line which converges on the 50% retracement at 7694 with a break lower targeting subsequent support objectives at 7620 & 7591. Broader bearish invalidation remains steady at 7735.

  • A summary of the DailyFX Speculative Sentiment Index (SSI) shows traders are net-short AUDUSD- the ratio stands at -2.49 (28.6% of traders are long)- bullish reading
  • Long positions are 20.4% lower than yesterday and 10.4% lower from last week
  • Short positions are 21.1% lower than yesterday and 4.7% lower from last week
  • Note that the recent fall in open interest on a recovery in the SSI ratio off recent extremes as price comes off key resistance continues to highlight the risk for a pullback in in the pair despite the current SSI standing.

Why and how do we use the SSI in trading? View our free trading guide here

EURUSD: The focus is on a pullback from near-term confluence resistance at 1.0820/22 with our broader outlook still weighted to the topside while above the 1.07-handle. A breach above target a more significant resistance zone at the 2016 open at 1.0872. Levels remain unchanged from last week’s EURUSD update.

DXY: We warned about the risk for a turn in the dollar index heading into the Fed last week with the decline reversing today just ahead of confluence support at 99.43/53- a region defined by the 61.8% extension of the decline off the yearly high and the January 2016 high-day close. The immediate short-bias is at risk into this zone with our broader focus still weighted to the downside sub 100.39. A break lower targets subsequent support targets at the 99-handle & the 2016 open at 98.69.

Looking for trade ideas? Review DailyFX’s 2017 1Q Projections

---Written by Michael Boutros, Currency Strategist with DailyFX

Join Michael for Live Weekly Trading Webinars on Mondays on DailyFX at 13:30 GMT (8:30ET)

Follow Michaelon Twitter @MBForex contact him at or Click Here to be added to his email distribution list.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.