US Dollar Talking Points:
- The US Dollar re-tested a key zone of resistance earlier today.
- While the latter-portion of this week will likely be marked by lower-liquidity conditions in consideration of the US holiday, tomorrow brings some high-impact USD prints and Thursday morning brings German CPI and employment numbers.
- DailyFX Forecasts are published on a variety of markets such as Gold, the US Dollar or the Euro and are available from the DailyFX Trading Guides page. If you’re looking to improve your trading approach, check out Traits of Successful Traders. And if you’re looking for an introductory primer to the Forex market, check out our New to FX Guide.
The next few trading days bring a backdrop of potential volatility into the mix. Thursday is Thanksgiving in the United States, and the day after is ‘Black Friday.’ This means many lightly-staffed desks on Wall Street and liquidity out of the US will likely be lackluster. But – before we get there Wednesday brings a couple of key data points into the mix and even Thursday morning has some high-impact data out of Europe.
In this webinar I went over a series of setups around the US Dollar; some looking for USD-strength while others were better or more attractively set up for USD-weakness.
US Dollar Revisit to Resistance
The US Dollar is back to that key resistance zone that runs from 98.33-98.50, including the 50% retracement of the October sell-off. This keeps the USD in a spot for short-side swings, with the potential for a quick wick through current resistance before a reversal begins to play-in.
US Dollar Daily Price Chart
Chart prepared by James Stanley; US Dollar on Tradingview
EURUSD Trip to Support
I had looked at this one in this week’s FX Setups, spotting the support zone around the 1.1000 handle for topside plays. That support came into play this morning and that door has re-opened. If price action breaks down to fresh lows, short-side breakouts could quickly come back into view.
EUR/USD Four-Hour Price Chart
Chart prepared by James Stanley; EURUSD on Tradingview
GBP/USD Revert to Support
Similar backdrop in Cable in which GBPUSD closed last week around a key zone of support and, this week, bounced after the open. There remains a bit of unfilled gap from approximately 1.2830-1.2834 but, once that’s filled, the door opens for bullish reversal prospects in the shorter-term theme, working in the confines of the longer-term theme of risk aversion.
GBP/USD Four-Hour Price Chart
Chart prepared by James Stanley; GBPUSD on Tradingview
USD/JPY Support Potential
USD/JPY has been on a clean bullish run over the past week, but price action is getting perilously close to resistance. This setup can be attractive with a pullback to support at the prior short-term resistance level around 108.70.
USDJPY Two-Hour Price Chart
Chart prepared by James Stanley; USDJPY on Tradingview
USD/CAD: Two-Way Potential
I had written about USD/CAD yesterday and that case remains largely the same, save for the insertion of some recent volatility into the mix. The short-term look can remain on the upside, looking for bullish momentum to push prices higher. Longer-term, however, the item of interest remains on short-side swings, especially given proximity to longer-term resistance levels.
USD/CAD Eight-Hour Price Chart
Chart prepared by James Stanley; USDCAD on Tradingview
Gold Grasping for Support
I had written about this one earlier this morning and potential remains ahead of tomorrow’s data. Gold prices have spent much of this morning grasping for support in a key area on the chart. I had been following the 1453-1460 zone for some time, and the 38.2% retracement of this summer’s breakout is of consideration as well as this helped to mark the November swing-low a couple of weeks ago.
Gold Price Eight-Hour Chart
Chart prepared by James Stanley; Gold 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
