US Dollar Approaching Yearly Highs Ahead of FOMC, NFP – Gold Poised
It’s Fed week – the highly anticipated FOMC interest rate decision on tap into the close of the month with US Non-Farm Payrolls looming on Friday. Last week’s stretch higher in the Dollar leaves the index vulnerable heading into the August open with setups across the majors in play this week. In this webinar we review updated technical setups on TNX (10yr Treasury Yield), DXY, EUR/USD, USD/CHF, USD/CAD, GBP/USD, Gold, Silver, USD/JPY, EUR/JPY, AUD/JPY & BTC (Bitcoin).
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Key Trade Levels in Focus
DXY – Key topside resistance at 98.33/42– look for a reaction there IF reached. Initial support at 98.87 with near-term bullish invalidation at 97.50. A topside breach exposes the 2016 yearly open at 98.69.
EUR/USD – Euro registered a fresh yearly low last week- DXY did not. Shorts may be vulnerable near-term while above 1.11. Key resistance now back at 1.1182/86 with a breach above 1.1220 needed to suggest a more significant low is in place. A break lower targets 1.1060s.
USD/CAD – Initial support at 1.3145 backed by 1.3115 with bullish invalidation at 1.3076/85. Resistance at 1.3193 backed by 1.3226– area of interest for exhaustion / short-entries IF reached.
Silver – XAG/USD testing major resistance confluence at 16.61/66– immediate long-bias at risk while below. Initial support around ~16.21 – looking for downside exhaustion ahead of 15.50 for entries. A topside breach keeps the focus on 17.31/52.
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 developments and upcoming event risk
—Written by Michael Boutros, Currency Strategist with DailyFX
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