Splitting the Greenback - USD Price Action Setups
In this webinar, we looked at the current state of consolidation in the U.S. Dollar, which leaves traders with one of two options: Either let USD move into some element of a trend, or split the approach with bullish and bearish setups against USD with stronger/weaker related themes.
- The first setup we looked at for long-USD exposure is USD/JPY. We had discussed this setup before the end of last year in the search for ‘longer-term support’ on the pair. We had outlined the area of potential support in the range of 114-116, and current price action is attempting to form support in this zone.
- We then moved on to look at GBP/USD as a way to get short-USD exposure. GBP/USD is working in a longer-term zone of support that we had also mentioned before the end of last year. This zone of support between 1.2082-1.2190 had helped to hold the lows after the ‘flash crash’ in October of this year.
- We then moved on to look at USD/CAD, which is currently testing support of a channel that’s been active for almost nine months. This is another setup that could offer long-USD exposure.
--- Written by James Stanley, Analyst for DailyFX.com
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.