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FX Price Action Setups Around the US Dollar

FX Price Action Setups Around the US Dollar

2019-10-15 19:00:00
James Stanley, Currency Strategist
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FX Price Action Talking Points:

US Dollar Pullback Finds Near-Term Trendline Support

We’re now at the halfway point in the first month of Q4 and a number of interesting price action setups are showing across global markets. So far in Q4 the US Dollar has continued to pullback from the fresh two-year-highs that were set on the first day of the quarter. This speaks to the longer-term rising wedge formation that’s been building throughout this year as buyers have continued to slow their enthusiasm at-or-around highs while remaining fairly aggressive around support. This was the key component of the Q4 Technical Forecast for the US Dollar as part of the DailyFX Trading Guides.

US Dollar Weekly Price Chart

us dollar weekly price chart

Chart prepared by James Stanley; US Dollar on Tradingview

On a shorter-term basis, that Q4 pullback in the US Dollar is now testing some key areas of support on the chart as taken from a bullish trendline. This was discussed earlier this morning and the scenario remains in-play later in the session.

US Dollar Daily Price Chart

us dollar daily price chart

Chart prepared by James Stanley; US Dollar on Tradingview

EUR/USD: Tests the ‘Nexus’ from Bullish/Bearish Scenarios

I spoke at length about the EUR/USD pair in the webinar. Price action is testing the support side of a bear flag formation. That also lines up with support at prior resistance, taken from around the 1.1000 psychological level.

EUR/USD Eight Hour Price Chart

eurusd eight hour price chart

Chart prepared by James Stanley; EURUSD on Tradingview

GBP/USD: Blast Off on Brexit Hopes

It’s been a strong bullish jump in the British Pound today as driven by headlines around Brexit. The breakout looked at in this morning’s article has already cleared through the first target. I’ve been following the long side of the pair for a while now as one of the more attractive ways to work with USD-weakness. And despite the USD’s hold around trendline support, GBP/USD has pushed up to fresh four-month-highs as driven by hopes around Brexit. In the webinar, I shared strategy for re-entry and/or bullish continuation scenarios in Cable.

GBP/USD Eight-Hour Price Chart

gbpusd eight hour price chart

Chart prepared by James Stanley; GBPUSD on Tradingview

USD/JPY Breaks Out to Fresh Two-Month-Highs

I began looking at the long side of USD/JPY last week as one of the more attractive venues for USD-strength scenarios. This was largely furnished by the Yen-weakness scenario that has largely remained as a bright spot across major fx currencies. This theme has held and USD/JPY has pushed above a key zone of resistance on the chart from 108.47-108.70.

That prior zone of resistance now becomes support potential in bullish continuation strategies on the pair.

USD/JPY Four-Hour Price Chart

usdjpy four hour price chart

Chart prepared by James Stanley; USDJPY on Tradingview

AUD/USD Remains Attractive for Long-USD Scenarios

Also of interest for bullish USD exposure is the longer-term backdrop around AUD/USD. With the US Dollar holding at trendline support, this can be an attractive theme in the near-term for long-USD scenarios without having to chase a fresh breakout such as in USD/JPY.

AUD/USD Eight-Hour Price Chart

audusd price chart

Chart prepared by James Stanley; AUDUSD on Tradingview

To read more:

Are you looking for longer-term analysis on the U.S. Dollar? Our DailyFX Forecasts have a section for each major currency, and we also offer a plethora of resources on Gold or USD-pairs such as EUR/USD, GBP/USD, USD/JPY, AUD/USD. Traders can also stay up with near-term positioning via our IG Client Sentiment Indicator.

Forex Trading Resources

DailyFX offers an abundance of tools, indicators and resources to help traders. For those looking for trading ideas, our IG Client Sentiment shows the positioning of retail traders with actual live trades and positions. Our trading guides bring our DailyFX Quarterly Forecasts and our Top Trading Opportunities; and our real-time news feed has intra-day interactions from the DailyFX team. And if you’re looking for real-time analysis, our DailyFX Webinars offer numerous sessions each week in which you can see how and why we’re looking at what we’re looking at.

If you’re looking for educational information, our New to FX guide is there to help new(er) traders while our Traits of Successful Traders research is built to help sharpen the skill set by focusing on risk and trade management.

--- Written by James Stanley, Strategist for DailyFX.com

Contact and follow James on Twitter: @JStanleyFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

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