USD at the Lows Ahead of the July Close- When Will the Pain End?
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The DXY is trading at key levels heading into the August open with a big week of event risk on tap. Highlighting this week’s economic docket are interest rate decisions from the RBA & BoE and the U.S. Non-Farm Payroll (NFP) report on Friday. Across the majors price action is either at-or-approaching significant pivot levels with multiple setups in view.
Keep your eyes on 1.2416 in USDCAD and 110.30 in USDJPY – both represents significant levels of near-term support heading into the July close. Euro has some room to rally but we’re generally looking for topside exhaustion early in the week.
GBPUSD opens the week just below slope resistance and while we could get a pullback off these levels, I’ll continue to favor buying Cable on a larger pullback. Expect volatility on ‘Super Thursday’ when we get the Bank of England (BOE) interest rate decision and updated quarterly inflation forecasts.
See our New 3Q projections on the majors in the DailyFX Trading Forecasts.
AUDJPY is in focus heading into tonight’s RBA rate decision with the pair breaking below channel support last night in Asia. Key near-term support remains 87.55/64 and the focus is on this threshold heading into the monthly open. Key resistance remains unchanged at the July 2015 low at 89.16.
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Key Data Releases
Other Setups in Play:
- USD/CAD: Is a Low in Place? US, Canada GDP on Deck
- GBP/JPY Rally Approaching Resistance- Breakout Pending
- Cryptocurrency Analysis: Bitcoin, Ethereum Prices Plunge into Support
- EUR/JPY: Continuation or Correction- Range Break to Offer Opportunity
---Written by Michael Boutros, Currency Strategist with DailyFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.