Scalp Webinar: USD, GBP Crosses in Focus Ahead of FOMC
- GBP, USD Crosses in Focus heading into FOMC
- Updated targets & invalidation levels
- Event Risk on Tap ThisWeek
Chart Created Using FXCM Marketscope 2.0
Notes:Heading into the FOMC policy decision the focus for the USDollar will be on this ascending pitchfork formation we have been tracking for months now. Interim support & near-term bullish invalidation remains at 12,050 / July median line with a break below risking a test of the lower median-line parallel just below 12,000. We’ll look for the Fed reaction to offer a clear break of the weekly opening range with resistance eyed at ~12,200.
Notes: Sterling broke key supoprt last week at 1.4950/90 with the break taking out a median-line extending off the late-December swing high. Our near-term bias remains weighted to the downside while below this hiughlighted region with a break below 1.4680 rsiking a larger drop into 1.4450. Only strength surpassing 1.4950 (close basis) would alleviate the short-side here (near-term bearish invalidation).
Notes:GBJPY has come into a key support barrier noted on Thursday’s scalp report at 178.11/31. The focus to start the week is on this zone with a general short-bias in play while below the highlighted resistance range just below the monthly central pivot at 181.70. Support break targets 176.22/29 backed by the December ML (blue) & 174.73. Note the daily momentum signature sitting at 40-here.
Notes: GBPAUD reversed at the key resistance range highlighted last week with the sell-off turning just ahead of key support at 1.9183-1.9224.The ML is serving as near-term resistance but the focus will be on a break of the weekly opening range with the Aussie looking to possibly mount some sort of near-term counter-offensive against the USD early this week. Support break targets 1.8952/84 – Topside resistance stands with the February TL. Looking lower sub 1.9650 (reversal day close).
Relevant Data Releases
Other Setups in Play:
- Scalping the GBPJPY Reversal- 180.30 Support Key
- GBPNZD Long Scalps at Risk Sub 2.0850- Reversal Play?
- GBPAUD Scalps Target 1.9850 Resistance Ahead of UK & AUS Data
- Post NFP Scalps Target USD Breakout - Weekly Opening Ranges in Focus
- NFP Setups in Focus- USD Breakout Plays
---Written by Michael Boutros, Currency Strategist with DailyFX
For updates on this scalp and more setups follow him on Twitter @MBForex
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