- Technical trade setups we’re tracking across the USD Majors / Commodities this week
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US Dollar NFP-Recovery to be Short Lived - Gold Prices Range Above Key Support
A beat on US Non-Farm Payrolls on Friday charged a sizeable rally in the US Dollar Index with DXY posting an outside-day reversal just pips from key support last week. We’re looking for exhaustion on this recovery. Gold continues to trade within the November opening range / just above critical long-term support at 1451 – looking expect more sideways price action heading into this week’s highly anticipated FOMC interest rate decision. In this webinar we review updated technical setups on DXY, EUR/USD, USD/JPY, AUD/USD, NZD/USD, Gold(XAU/USD), Crude Oil, USD/CAD and GBP/USD.
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Key Trade Levels in Focus
US Dollar – The immediate focus is on a break of the 97.30 – 97.87 range for guidance. Levels of interest for exhaustion are 97.95 and 98.09 IF reached. A downside break exposes 97.11- a break / close below is needed to validate a larger turn in the Dollar. Review my latest US Dollar Price Outlook for a closer look at the longer-term DXY technical trade levels.
EUR/USD – Euro turned from big resistance last week with price posing and outside reversal candle on Friday. We’re looking for support / exhaustion ahead of 1.1024/33 IF EUR/USD is heading higher. Resistance at 1.1104/09 with a topside breach exposing 1.1135 and 1.1167. Review my latest Euro Price Outlook for a closer look at the longer-term EUR/USD technical trade levels.
USD/JPY – Price turned from critical yearly-open resistance last week at 109.67 with the decline now testing near-term support at 108.48 into the US open. Could see some recovery but looking for exhaustion ahead of 108.92 with a break lower targeting 108.02 and 107.71/88. Review my latest Japanese Yen Price Outlook for a look at the longer-term technical trade levels.
USD/CAD –Price remains in a consolidation pattern and we’re looking for the breakout. Key resistance stands at 1.3335/55 – the long-bias is at risk into this threshold. Ultimately, a break below near-term support at 1.3252/60 is needed to validate a reversal targeting 1.3219.Review my latest Canadian Dollar Price Outlook for a closer look at the USD/CAD intraday technical trade levels.
Gold– Gold opens the week just below the monthly open at 1463. Initial support 1453 backed by 1451- critical. Initial resistance at 1471 with a breach above 1489 needed to shift the broader focus higher in gold. Review my latest Gold Price Outlook for a closer look at the near-term technical trade levels.
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Key Event Risk This Week
Economic Calendar - latest economic development and upcoming event risk
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---Written by Michael Boutros, Currency Strategist with DailyFX
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