Strategy Webinar: US Dollar Rally Extends into First Major Hurdle
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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.
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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 email@example.com
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.