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US Dollar Breakdown Testing Yearly Open Support
Last week we warned that, “The levels are clear and while the US Dollar Index (DXY) could make another run at the highs, we’re generally looking for topside exhaustion IF price is indeed heading lower.”The Dollar is testing yearly open support into the start of the week after a massive outside-weekly reversal broke below the June opening-range lows. Looking for some back & fill to offer re-entry on numerous USD crosses. In this webinar we review updated technical setups on DXY, EUR/USD, USD/CHF, NZD/USD, AUD/USD, USD/CAD, USD/JPY, GBP/USD, EUR/NZD, Gold, Crude Oil (WTI) and SPX (S&P 500).
Key Trade Levels in Focus
DXY – Focus is on a close below yearly open support at 96.14. Interim resistance 96.56 with bearish invalidation at 96.75. Downside support objectives at 95.74 and 95.55.
EUR/USD – The Euro breakout is testing near-term confluence resistance around the 1.14-handle. Interim support at 1.1350 with bullish invalidation raised to 1.1317. A topside breach keeps the focus on yearly open resistance at 1.1445- look for a bigger reaction there IF reached.
NZD/USD – Kiwi is probing Fibonacci resistance early in the week at 6608 – Failure here (daily close) could see some corrective action but IF price is heading higher, losses should be limited to Friday’s low. Initial support 6580- a topside breach targets 6640/57.
AUD/USD – Trade remains constructive while above the 69-handle for now. Topside resistance objectives at 6981 and 7005/18 (critical).
Gold – The gold price has extended to near-six year highs and while the focus remains weighted to the topside, be careful chasing here. Initial support 1380 with bullish invalidation raised to 1350. Subsequent topside resistance objectives at 1433 and the 100% extension at 1451.
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---Written by Michael Boutros, Currency Strategist with DailyFX
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