Technical Setups for the Week Ahead as DXY Flirts with Disaster
- Review of current / active setups into the weekly open
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An examination of price action highlights the risk of a near-term low in the greenback (high in EURUSD) with a look at some recent publications also reflecting subtle extremes in sentiment. That said, the DXY is still trading in risky territory and a recovery above 92 would be needed to suggest a more meaningful rebound is underway.
The crosses all look appealing at these levels with EUR & CAD favored in the scenario of USD strength (short EURUSD / long USDCAD) while GBP & AUD are favored in the event of USD weakness (long GBPUSD & AUDUSD).
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Highlighting this week’s event risk will be the central bank interest rate decisions from the Bank of England (BoE) and inflation data from the both the UK & U.S. Keep in mind it’s the blackout period for Fed officials ahead of next week’s highly anticipated FOMC interest rate decision.
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Key Data Releases
Other Setups in Play:
- GBP/USD Struggles at Resistance- Weakness to Offer Opportunity
- AUD/USD Battles to Surpass 8000- Watch for a Break of this Range
- Strategy Webinar: ECB, BoC Highlight Key Setups for September
- Ethereum Prices Plummet into Support- 295 Critical
See our 3Q FX projections in the Free DailyFX Trading Forecasts.
---Written by Michael Boutros, Currency Strategist with DailyFX
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.