A Weekly Technical Perspective on DXY, GBP/USD, AUD/USD

In this array we scale-back and take a demeanour during a broader technical design to benefit a bit some-more viewpoint on where we are in trend. Here are a pivotal levels that matter streamer into a yearly open. Review the Weekly Strategy Webinar for an in-depth relapse of these setups and more.

DXY Weekly Chart

DXY Price Chart - Weekly Timeframe

Notes: The dollar index opens a year only above support during 91.93 with a 2017 low-week tighten only reduce during 91.33– a evident downside disposition is during risk near-term while above this threshold with initial insurgency eyed along a median-line (blue) around 93.10 corroborated by 93.89. This turn is tangible by a 2016 low-week annulment tighten and converges on a 200-week relocating normal into a tighten of a week.

Bottom line: Expect side-ways to aloft cost movement while above 91.33 – eventually we’ll be looking for a some-more sizeable liberation to offer improved entries on a short-side targeting 89.62. Broader bearish cancellation for a downtrend stands during 95.90-96.00.

New to Trading? Get started with this Free Beginners Guide

GBP/USD Weekly Chart

GBP/USD Price Chart - Weekly Timeframe

Notes: We’ve been tracking this well-defined descending pitchfork formation given final year and streamer into a yearly open there are some levels to know. Interim insurgency stands during a 2016 high-week annulment tighten during 1.3675 with bullish cancellation for a broader uptrend now lifted to a 1.33-handle, where a Dec lows intersect on simple slope support.

Bottom line: The evident concentration is on a mangle of a 1.33-1.3675 operation with a topside disposition exposed while below. A mangle reduce would change a concentration reduce towards 1.3036 and a 52-week relocating normal during 1.2950s- areas IF reached would be of seductiveness for depletion / long-entries. In a eventuality cost breaks higher, demeanour for successive topside objectives into a median-line nearby a 38.2% retracement during 1.3952.

It’s value observant that anniversary tendencies are flattering bearish for Sterling streamer into a yearly open with COT information (Commitment of Traders) display a substantial build in long-exposure on vast speculators- suggests bearish.

See how shifts in GBP/USD sell positioning are impacting trend- Click here to learn some-more about sentiment!

AUD/USD Weekly Chart

AUD/USD Price Chart - Weekly Timeframe

Notes: Aussie’s annulment during key slope support was well-documented final year and streamer into 2018 a broader concentration does sojourn higher. That said, prices are now contrast a long-term 200-week relocating normal and a weekly tighten above this threshold is indispensable to keep a evident allege viable targeting a 2017 high-day tighten during 8059.

Bottom line: The evident allege might be during risk here sub-7886/98 though a trade stays constructive while above 7630. Interim support eyed during 7749. From a trade standpoint, I’m looking reduce into a monthly open though eventually a incomparable shock would offer auspicious long-entries within this proportions of this broader uptrend.

Check out the New AUD/USD 2018 projectionsin the Free DailyFX Trading Forecasts

Previous Weekly Technical Perspectives

– Written by Michael Boutros, Currency Strategist with DailyFX

Follow Michaelon Twitter @MBForex hit him during mboutros@dailyfx.com or Click Here to be combined to his email placement list.

About author