Weekly Technical Outlook- US Dollar Bears to Face FOMC, NFP
- Key technical setups we’re tracking into the monthly close
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Is the USD ready for a Reprieve?
An in-depth, multi-timeframe look at the DXY (Dollar Index) alongside the FX Majors heading into the start of the week. The price action analog we’ve been following continues to suggest that a material risk remains for some USD exhaustion (rebound in price) as price approaching structural support just above the 88-handle.
Key Levels in Focus
DXY – Looking for support heading into 88.00/27- Resistance at 91
USD/JPY- Interim resistance at 109.55- bearish invalidation at 110.23
AUD/JPY- IF the pair is heading towards the range lows- advances should be capped by 88.40s.
GBP/USD – Risk is for a pullback while below 1.44- Interim support at 1.4023- break there would validate near-term correction lower in price.
For a complete breakdown of Michael’s technical approach, review his Foundations of Technical Analysis mini-series
Keep in mind, we’re heading into the close of the month with Fed Chair Janet Yellen’s final FOMC interest rate decision and U.S. NFPs (Non-Farm Payrolls) on tap this week. Updated technical setups discussed on DXY, USD/JPY, AUD/JPY, GBP/USD, EUR/USD, AUD/USD, NZD/USD, GBP/JPY and Gold.
Key Data Releases
Other Setups in Play:
- USD/JPY Plummets to 4-Month Lows; More Pain to Follow?
- AUD/JPY Outlook Hinges on Break of Monthly Opening
- GBP/USD Breakout Underway - Topside Targets in View
- AUD/USD Rally Approaching Initial Resistance Targets
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---Written by Michael Boutros, Currency Strategist with DailyFX