- Technical trade setups we’re tracking into the start of the week / month
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US Dollar Fails at Yearly Highs
The US Dollar Index turned from confluence resistance last week (after spiking into a fresh yearly high) and leaves the DXY vulnerable into the start of the month. There are numerous monthly opening-ranges taking shape around key support / resistance zones and our focus remains on the USD majors ahead of this week’s FOMC interest rate decision. Keep in mind that US Midterm Elections are on tap tomorrow and markets might drift a bit into the close of trade- here are the targets and invalidation levels that matter.
Key Levels in Focus
DXY – Risk for losses remains while below 96.98 on a close basis. Break below 95.71 would be needed to confirm a reversal.
EUR/USD – Looking for exhaustion at the 1.1345/60 support zone. Daily close above 1.15 needed to suggest a more significant low is in place.
AUD/USD – Key resistance confluence at 7252– breach targets 7327. Constructive while above 7111.
USD/CAD – Critical resistance range still at 1.3130/55- a break below 1.3022 needed to validate the turn.
Gold – Key resistance still 1238- breach targets 1250/52. Interim support 1222 with bullish invalidation steady at 1214.
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It’s a big week of event risk with central bank interest rate decisions from the RBA, the FOMC and the RBNZ highlighting the economic calendar. In this webinar we review updated technical setups on DXY, EUR/USD, USD/CAD, NZD/USD,AUD/USD,Gold,USD/JPY,AUD/JPY, S&P 500 (SPX) and NIFTY.
For a complete breakdown of Michael’s trading strategy, review his Foundations of Technical Analysis series on Building a Trading Strategy - Latest Episode: Trading Psychology
Key Event Risk This Week
Economic Calendar - latest economic developments and upcoming event risk
Active Trade Setups in Play:
- USD/CAD Price Outlook: Key Resistance Holds into the October Close
- EUR/USD Weekly Technical Perspective– Euro Defends 2018 Lows
- Gold Price Outlook: XAU/USD Bulls Face First Test of Uptrend Support
- NZD/USD Price Outlook: Kiwi Carries Breakout Potential
---Written by Michael Boutros, Currency Strategist with DailyFX
Follow Michael on Twitter @MBForex or contact him at email@example.com