Strategy Webinar: US Dollar Rally Extends into First Major Hurdle
- Technical trade setups we’re tracking into the start of the week 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
New to Forex Trading? Get started with this Free Beginners Guide
US Dollar Index Testing Key Resistance Early in the Week
The US Dollar Index (DXY) is testing the first of two major resistance targets at 96.13- a level defined by the yearly high-week close and, “a close above this threshold would be needed to keep the long-bias in play with such a scenario targeting parallel resistance (red) / yearly highs at 96.98. Key support still 93.65/89.” The implications are similar for the Euro with the low-week reversal highlighting 1.1436 as a level of interest. Here are the levels that matter this week.
Key Levels in Focus
DXY – Resistance at 96.13 & 96.98 (key) – both areas of interest for possible near-term exhaustion
EUR/USD – Looking for support early in the week while above the yearly low-week close at 1.1436.
Risk is lower sub-1.1603 (weekly reversal close)
USD/JPY – Initial support at 113.08- break lower would expose 112.65. Weekly open resistance at113.76 backed by 114.37/50(bearish invalidation).
Gold –– Looking for price support ahead of 1180 for the long-bias to remain viable. Key resistance / bearish invalidation still 1215.
Why does the average trader lose? Avoid these Mistakes in your trading
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:
- Gold Price Outlook: XAU/USD Breakout Primed – Levels to Know
- Canadian Dollar Price Outlook: Trading the USD/CAD Breakdown
- Strategy Webinar: US Dollar Trade Setups into the Monthly / 4Q Open
---Written by Michael Boutros, Currency Strategist with DailyFX
Follow Michael on Twitter @MBForex or contact him at firstname.lastname@example.org