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DXY Rally Approaches Weekly Resistance Hurdle
The Dollar index has rallied nearly 6.5% from the yearly lows with the advance approaching confluence resistance at 94.14/27. Although broader outlook remains constructive, the near-term technical picture suggests price may be vulnerable heading into this key zone. Accordingly, our focus has remained on the majors and we’re looking for possible exhaustion this week.
Key Levels in Focus
DXY – Resistance at 94.14/27. Initial support channel support ~93.10, bullish invalidation at 92.52
EUR/USD – Key near-term support at 1.1705(subsequent support 1.1616). Resistance 1.1827 backed by 1.1915
AUD/USD – Critical support still 7480. Topside resistance objectives at 7565 & 7600- Key resistance 7636
GBPUSD – Risk is lower sub-1.35(resistance). Next beg support target at 1.33
For a complete breakdown of Michael’s trading strategy, review his Foundations of Technical Analysis series on Building a Trading Strategy
UK data will highlight this week’s event risk with commentary from Bank of England (BoE) officials, the Consumer Price Index (CPI) and GDP figures on tap. In this webinar we review updated technical setups on DXY, EUR/USD, AUD/USD, GBP/USD, AUD/NZD, AUD/JPY, Gold, Crude Oil, USD/JPY, EUR/NZD, TNX (US 10Year), Bitcoin (BTC/USD), Ethereum (ETH/USD), Ripple (XRP/USD) and Litecoin (LTC/USD).
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Key Data Releases
Other Setups in Play:
- AUD/USD Price Analysis: Pending Consolidation Break to Fuel Next Leg
- Weekly Technical Perspective on EUR/USD, U.S. Bonds and Crude Oil
- Weekly Technical Perspective on GBP/USD, AUD/USD and U.S. Bonds
Why does the average trader lose? Avoid these Mistakes in your trading
---Written by Michael Boutros, Currency Strategist with DailyFX
Follow Michael on Twitter @MBForex or contact him at mboutros@dailyfx.com
