FOMC, USD Majors, Gold, Oil, S&P 500, Nasdaq Weekly Technical Outlook

Weekly Technical Trade Levels on USD Majors, Commodities & Stocks

• Technical setups we’re tracking into the open of the week– FOMC / BoE rate decisions on tap
• Next Weekly Strategy Webinar: Monday, September 25 at 8:30am EST
• Review the latest Weekly Strategy Webinars on my YouTube playlist.

In this webinar we take an in-depth look at the technical trade levels for the US Dollar (DXY), Euro (EUR/USD), British Pound (GBP/USD), Canadian Dollar (USD/CAD), Australian Dollar (AUD/USD),  Japanese Yen (USD/JPY), Gold (XAU/USD), Crude Oil (WTI), Bitcoin (BTC/USD), S&P 500 (SPX500), Nasdaq (NDX) and Dow Jones (DJI). These are the levels that matter on the technical charts heading into this week’s FOMC interest rate decision.

US Dollar Price Chart – DXY Daily

Chart Prepared by Michael Boutros, Sr. Technical Strategist; DXY on TradingView

The US Dollar Index is trading into a critical resistance range at 105.39/67- a region defined by the 38.2% Fibonacci retracement of the 2022 decline and the August low-week close. Heading into the FOMC, the focus is on possible topside exhaustion / price inflection into this threshold with the bulls vulnerable while below 105.67.

 A breach / weekly close above this threshold is needed to validate a larger breakout towards the 107-handle. Initial support rests with the yearly high-week close at 104.63 with broader bullish invalidation now raised to 103.

Canadian Dollar Price Chart – USD/CAD Daily

Chart Prepared by Michael Boutros, Sr. Technical Strategist; USD/CAD on TradingView

The Canadian Dollar counter-offensive is vulnerable here with USD/CAD turning just pips from confluent support today at the 38.2% retracement / 200-day moving average (1.3464). Note that the monthly opening-range lows registered at 1.3489- watch the daily close. Resistance now back at 1.3545/68 with a close above the median-line (red) needed to suggest a more significant near-term low is in place.

Weakness below this threshold would expose the July uptrend into the 1.34-handle. Review my latest Canadian Dollar Short-term Technical Outlook for closer look at these levels.

S&P 500 Price Chart – SPX500 Daily

Chart Prepared by Michael Boutros, Sr. Technical Strategist; SPX500 on TradingView

The S&P 500 marked an outside-day reversal on Friday off key resistance at 4506/12- a region defined by the 61.8% retracement of the July decline, the objective monthly-open, and the 100% extension of the October advance. The October opening-range is preserved and the levels well-defined heading into the Fed rate decision- the focus is on a breakout of the 4414-4512 zone for guidance.

A break lower would threaten a deeper correction back towards 4347 with key support key support seen around 4300. Ultimately a topside breach / close above the yearly high-day close at 4544 is needed to mark resumption off the broader uptrend towards 4611.

Economic Calendar – Key Data Releases (FOMC / BoE)

Economic Calendar - latest economic developments and upcoming event risk.

--- Written by Michael Boutros, Sr Technical Strategist with FOREX.com

Follow Michael on Twitter @MBForex