- Technical trade setups we’re tracking into the start of the week
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EUR/USD in Consolidation ahead of ECB - Breakout Pending
Euro is trading within the confines of a multi-month consolidation formation with price testing the upper-bounds ahead of the ECB interest rate decision this week. The immediate risk is for failure up her but we’re on the lookout for possible price exhaustion ahead of structural support early in the week. In this webinar we review updated technical setups on DXY, EUR/USD, USD/CAD, Gold, USD/JPY, AUD/USD, Dow (US30), DAX (GER30), GBP/USD, and Crude Oil (WTI).
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Key Levels in Focus
DXY – Well-defined monthly opening-range between 96.40 and the November close at 97.20 (near-term bearish invalidation).
EUR/USD – Initial support at 1.1350 with bullish invalidation at 1.1318. Close above 1.1426 needed to fuel next leg higher in Euro targeting 1.1472 & 1.1515/24.
AUD/USD – Risk is lower but we’re looking for support ahead of 7140 IF Aussie is to maintain the October advance. Initial resistance with the 100DMA (~7235) with 7327/36 still critical.
Gold – Topside resistance targets at 1252, the 200DMA (~1255) and 1262. Initial support 1236 with broader bullish invalidation steady at 1214/15.
For a complete breakdown of Michael’s trading strategy, review his Foundations of Technical Analysis series on Building a Trading Strategy – Next Episode on Friday 12/14 at 10:30am ET
Key Event Risk This Week
Economic Calendar - latest economic developments and upcoming event risk
Active Trade Setups:
- Gold Technical Outlook: Price Breakout Approaching Initial Targets
- USD/CAD Technical Outlook: Initial Targets for Post-NFP Reversal
- NZD/USD Price Outlook: Pending Bull Flag Breakout in Kiwi
---Written by Michael Boutros, Currency Strategist with DailyFX
Follow Michael on Twitter @MBForex or contact him at mboutros@dailyfx.com
