- Technical trade setups we’re tracking into the start of the week
- Check out our 2019 projections in our Free DailyFX USD Trading Forecasts
- Live Weekly Trading Webinars on Mondays on DailyFX at 8:30ET
FOMC in Focus as Interest-rate Expectations Soften
The Fed is expected to raise interest rates by 25bps this week and the focus will be on the accompany economic projections as they pertain to growth, employment and inflation. Most importantly, the updated interest rate dot-plot will be critical – Fed Fund Futures are calling for just one hike next year while the most recent FOMC outlook calls for 2-3. That said, the DXY continues to hold below multi-year slope resistance on building weekly divergence and its make-or-break for the greenback heading into the close of the year. In this webinar we review updated technical setups on DXY, EUR/USD, EUR/JPY, EUR/NZD, NZD/USD, AUD/USD, USD/CAD, Gold, USD/JPY, DAX (GER30), GBP/USD, and Crude Oil (WTI).
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Key Levels in Focus
DXY – Focus is on a break of the critical range between 97.87 and 95.90. Breach exposes 99.98 – Downside break targets 94.09.
EUR/USD – Price needs to stabilize above 1.13-for the bulls to gain footing. Key resistance at 1.1426.
AUD/USD – Looking for downside exhaustion while above 7160 IF Aussie is to maintain the October advance. Initial resistance with the 100DMA (~7225) with 7327/36 still critical. A downside break would expose the yearly LDC at 7087
Gold – Topside resistance targets at 1252, the 200DMA (~1253) 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 1/11 at 10:30am ET
Key Event Risk This Week
Economic Calendar - latest economic developments and upcoming event risk
Active Trade Setups:
- EUR/USD Price Outlook: Euro Breakout Imminent- Battle Lines Drawn
- NZD/USD Technical Outlook: Price Reversal Targeting Trend Support
- Gold Price Technical Outlook: Bulls Pause After $1250 Test
- USD/CAD Technical Outlook: Initial Targets for Post-NFP Reversal
---Written by Michael Boutros, Currency Strategist with DailyFX
Follow Michael on Twitter @MBForex or contact him at firstname.lastname@example.org