- Technical trade setups we’re tracking into the start of the week
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Euro, DXY, Aussie & Kiwi Testing Range Extremes
The majors have continued to hold broader consolidation / congestions patterns with numerous setups starting the week at-or-near range extremes. While the broader trends remain elusive, the levels are clear and heading into the start of the week the focus is on a reaction off these key thresholds. In this webinar we review updated technical setups on DXY, EUR/USD, AUD/USD, USD/CAD, EUR/NZD, NZD/USD, Gold, Crude Oil (WTI), GBP/USD, AUD/JPY and SPX.
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Key Levels in Focus
DXY – Focus is on support at 96.84 backed by 96.63 (near-term bullish invalidation) Key resistance steady at the 2018 high-week close at 97.42 and the key 61.8% retracement at 97.87
EUR/USD – Initial resistance at 1.1321 backed by 1.1347- look for a bigger reaction there IF reached. Initial support at 1.1285 with near-term bullish invalidation at 1.1250.
USD/CAD – Focus is on a reaction at key support early in the week at 1.3298-1.3307. Initial resistance at 1.3384/87 with 1.3435/37 still critical. A downside break exposes 1.3234/48(broader bullish invalidation).
Gold – Price it is testing January trendline support (consolidation) – Near-term risk is lower sub-1291 with support eyed at 1280 backed by 1275/76- look for a bigger reaction there If reached. A topside breach looks to challenge 1300.
Crude Oil – Focus is on key critical confluence resistance at 63.68-64.40 –weekly close above is needed to keep the long-bias viable targeting 65 and beyond. Interim support at the 200DMA ~61.09backed by bullish invalidation at 60.06.
For a complete breakdown of Michael’s trading strategy, review his Foundations of Technical Analysis series on Building a Trading Strategy
Key Event Risk This Week
Economic Calendar - latest economic developments and upcoming event risk
Active Trade Setups:
- Aussie Price Outlook: Australian Dollar Breakout Faces First Test
- Canadian Dollar Price Outlook: USD/CAD Eyes Breakout as Loonie Coils
- Gold Price Outlook: XAU Reversal Targets Consolidation Resistance
- Euro Price Outlook: EUR/USD Trade Levels Ahead of ECB
- Sterling Price Outlook: Pound at Key Support as Brexit Saga Continues
---Written by Michael Boutros, Currency Strategist with DailyFX
Follow Michael on Twitter @MBForex