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US Dollar on the Defensive Ahead of FOMC
It’s a major week of event risk with the FOMC interest rate decision and U.S. Non-Farm Payrolls (NFP) on tap. The US Dollar Index reversed sharply just ahead of Fibonacci resistance last week with the decline now approaching the 61.8% retracement of the recent advance at 95.66. We’re on the lookout for a reaction here early in the week with broader risk weighted to the downside for the USD. In this webinar we review updated technical setups on DXY, EUR/USD, GBP/USD, Gold, USD/JPY, GBP/JPY, AUD/USD, and SPX.
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Key Levels in Focus
DXY – Monthly open resistance at 96.15 with the risk lower while below 96.30s – Initial support 95.66 backed by the 100DMA / 61.8% retracement at 95.25/30.
EUR/USD – Critical near-term resistance targets at 1.1445/50 and 1.1463 – look for a bigger reaction there for guidance.Initial support at 1.1350 with broader bullish invalidation steady at 1.13.
GBP/USD – Risk remains for near-term exhaustion sub-1.3181 with near-term bullish invalidation at 1.3072. Broader outlook remains constructive while above 1.2970.
Gold – Price breakout testing BIG resistance at1302 (2018 open). Initial support 1287 with near-term bullish invalidation raised to the yearly open at 1279. A topside breach targets subsequent resistance objectives at 1322.
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Key Event Risk This Week
Active Trade Setups:
- Near-term Trade Setups in EUR/USD and GBP/USD
- Gold Price Technical Outlook: XAU Pullback to Threaten 2019 Range Low
- AUD/USD Technical Price Outlook: Aussie Recovery Losing Steam
- GBP/USD Price Outlook: Pound Testing Key Resistance Amid Brexit Talks
- EUR/USD Technical Price Outlook: Euro Testing Lower Bounds of Support
---Written by Michael Boutros, Currency Strategist with DailyFX
Follow Michael on Twitter @MBForex