- Technical trade setups we’re tracking into the start of the month / quarter on the US Dollar Majors
- Check out our 2018 4Q projections in our Free DailyFX USD Trading Forecasts
- Live Weekly Trading Webinars on Mondays on DailyFX at 8:30ET
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US Dollar Recovery in Focus – Pullback to Offer Opportunity
The US Dollar Index (DXY) has been on the offensive for nearly two weeks with the DXY rebounding more than 1.6% off the September lows. While the reversal does threaten a larger recovery in the greenback, the threat of a near-term exhaustion pullback may offer a few setups across the majors into the start of the month. Here are the levels that matter this week.
Key Levels in Focus
EUR/USD – Risk is lower ssub-1.1693. Slope support around 1.1660s -Key support still 1.1510/30.
USD/JPY – Initial topside resistance targets at 114.37/50. Support & bullish invalidation at 113.08/27.
Gold –– Looking for support hold ahead of 1172. Initial resistance 1194 with bearish invalidation at 1210/15.
Crude Oil – Focus is on key resistance zone at 73.80-74.94 to start the month- breach exposes 77.26. Support at 71.10/20 with bullish invalidation at 67.83.
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Highlighting this week’s economic calendar will be the RBA interest rate decision on Tuesday and key employment reports from both the US and Canada on Friday. Consensus estimates are calling for a Non-Farm Payrolls (NFP) print of 185K for the month of September with the unemployment rate expected to slip to 3.8%. Keep in mind it’s the start of a new quarter and we’ll want to tread lightly into the monthly opening ranges. In this webinar we review updated technical setups on DXY, EUR/USD, GBP/USD, USD/JPY, USD/CAD, Gold , Crude, AUD/USD, AUD/JPY and GBP/AUD.
For a complete breakdown of Michael’s trading strategy, review his Foundations of Technical Analysis series on Building a Trading Strategy
KeyEvent Risk This Week
Economic Calendar - latest economic developments and upcoming event risk
Active Trade Setups in Play:
- USD/JPY Price Outlook: Yen Decision Time as Rally Tests Yearly Highs
- EUR/USD Price Outlook: Euro Break Out Eyes July Highs
- Strategy Webinar: Will US Dollar Weakness Hold into FOMC?
---Written by Michael Boutros, Currency Strategist with DailyFX
Follow Michael on Twitter @MBForex or contact him at mboutros@dailyfx.com
