Strategy Webinar: Will US Dollar Weakness Hold into FOMC?
- Technical trade setups we’re tracking into the FOMC this week on the US Dollar Majors
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US Dollar Remains on the Defensive Ahead of FOMC
The US Dollar Index (DXY) has remained on the defensive since the start of the month with price trading just above confluence support at 93.65/89 into the weekly open. Although the medium-term outlook remains weighed to the downside, a near-term recovery is viable while above this threshold with a move higher to ultimately offer more favorable short-entries. Today we took a look across the majors with key event risk this weekly likely to fuel added volatility in the USD crosses. Here are the levels that matter this week.
Key Levels in Focus
DXY – Initial key support at 93.65/89 – break lower targets 92.28/62. Resistance / bearish invalidation at 96.09.
EUR/USD – constructive while above 1.1660s – Initial resistance targets at 1.1791, 1.1850 and 1.1947.
Gold – focus is on a break of the monthly consolidation zone– key resistance still 1215/21. Support at 1186.
AUD/USD – looking for exhaustion / long-entries on a pullback while above the monthly open (7184). Key resistance still 7327/37.
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Highlighting this week’s economic calendar will be the FOMC interest rate decision on Wednesday with the central bank widely expected to hike by 25 basis points. The market has already priced in this move and the focus will be on the updated economic projections on growth, unemployment & inflation and the highly anticipated interest rate dot-plot. In this webinar we review updated technical setups on DXY, EUR/USD, Gold ,GBP/USD, AUD/USD, USD/JPY, NZD/USD, EUR/JPY, USD/CAD, Crude and GBP/AUD.
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Key Event Risk This Week
Economic Calendar - latest economic developments and upcoming event risk
Active Trade Setups:
- Weekly Technical Perspective on the US Dollar (DXY) Ahead of FOMC
- EUR/USD Price Outlook: Euro Break Out Eyes July Highs
- Gold Price Outlook: Breakout Potential as XAU/USD Consolidates
---Written by Michael Boutros, Currency Strategist with DailyFX
Follow Michael on Twitter @MBForex or contact him at email@example.com
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.