Technical Trade Levels: US Dollar, EUR/USD, GBP/USD, USD/CAD & Gold
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US Dollar Surges Towards November High – Gold Prices Threatening Major Support
The dollar is on offense early in the week with the DXY challenging the objective monthly highs. We’re on the lookout for possible exhaustion this week on multiple Majors on the back of last week’s stretch. Gold remains at risk with price continuing to press major support here- looking for a reaction here. In this webinar we review updated technical setups on DXY, EUR/USD, GBP/USD, USD/CAD, NZD/USD, AUD/USD, Gold(XAU/USD), Crude Oil and SPX (S&P 500).
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Key Trade Levels in Focus
US Dollar – The index is approaching the monthly opening-range highs – look for resistance ahead of 98.39/45 early in the week. Initial support 98.15/13 with bullish invalidation raised to slope support around the 98-handle. A topside breach of the monthly highs would shift the focus towards the 61.8% retracement at 98.69. Review my latest US Dollar Price Outlook for a closer look at the DXY technical trade levels.
EUR/USD – Euro opens he week just above near-term support at 1.1012/15 - looking for an exhaustion low while above critical support at 1.0982/94. Slope resistance stands near ~1.1030s backed by 1.1048- ultimately a breach above pitchfork resistance is needed to validate a larger reversal in price. Weakness beyond 1.0987 would risk substantial losses for euro with such a scenario targeting initial support objectives at the yearly low-day close at 1.0932. Review my latest Euro Price Outlook for a closer look at the EUR/USD technical trade levels.
GBP/USD – Sterling continues to contract into a multi-week range with GBP/USD holding just above support at 1.2818/37 into the start of the week. IF price is indeed heading lower, look for resistance head of 1.2929 with key resistance / bearish invalidation at 1.2990. A downside break still must contend with the objective yearly open at 1.2754- look for a larger reaction there IF reached. Review my latest British Pound Price Outlook for a look at the longer-term weekly technical levels.
USD/CAD –Risk for topside exhaustion heading into the high-day close / 61.8% retracement at 1.3335/55. Initial support 1.3253 with a break below the monthly ascending channel needed to validate a turn in price. Review my latest Canadian Dollar Price Outlook for a closer look at the USD/CAD intraday technical trade levels.
Gold– Gold continues to test BIG support here at 1451 – a pivot below this region would represent considerable technical damage to bullion with such a scenario targeting 1433. Initial resistance stands at 1461 with near-term bearish invalidation at 1479. Looking for some exhaustion down here this week. Review my latest Gold Price Outlook for a closer look intraday technical trade levels.
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 development and upcoming event risk
---Written by Michael Boutros, Currency Strategist with DailyFX
Follow Michael on Twitter @MBForex
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.