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USD Reverses from Key Resistance Zone
Last week we highlighted a key confluence resistance range in the US Dollar Index (DXY) at 91.20/27 and, “although the broader outlook remains constructive, the near-term technical picture suggests price may be vulnerable heading into this key zone.” The USD closed just below this threshold on Friday and the risk remains for further losses while below this threshold.
Key Levels in Focus
DXY – Resistance at 94.20/27. Initial support at 93.43 & 92.64, broaderbullish invalidation at 92.28
EURUSD – Key near-term support at 1.1705(subsequent support 1.1616). Resistance 1.1827 backed by 1.1915
AUDUSD – Initial support 7582 with bullish invalidation now raised to 7481. Topside resistance objectives at 7660 backed by 7708 (head & shoulders measured objective)
USDCHF – Support at 9846/52- Resistance & near-term bearish invalidation at 9908
For a complete breakdown of Michael’s trading strategy, review his Foundations of Technical Analysis series on Building a Trading Strategy
The Reserve Bank of Australia (RBA) interest rate decision highlights a rather light week of event risk. In this webinar we review updated technical setups on DXY, EURUSD, AUDUSD, USDCHF, USDCAD, GBPUSD, GBPAUD, GBPJPY, Gold, SPX (S&P 500).
New to Forex? Get started with this Free Beginners Guide
Key Data Releases
Economic Calendar - latest economic developments and upcoming event risk
Other Setups in Play:
- US Dollar Technical Outlook: USD Flies to Fresh Yearly Highs
- EUR/USD Technical Outlook: Are the Euro Tides Shifting?
- The US Dollar Exhaustion Trade- Levels to Know
- AUD/USD Price Analysis: Pending Consolidation Break to Fuel Next Leg
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
