U.S. Dollar eyes daily resistance levels and trade setups for the week February, 2017

Last week’s Non-Farm Payroll beat expectations, but unemployment rate ticked up slightly to 4.8%. 

This week’s trades will remain rather technical as the market seeks to normalizes from the volatility we have experienced last week from the string of economic releases. At the moment, U.S. Dollar pairs remain rather bearish as they sit at daily resistance levels.

screenshot-at-feb-06-00-23-16
EURUSD 1-Day

Starting off with the EURUSD daily timeframe, this pair tested a previous support turned resistance level and is now expected to serve as a daily support level once again. Last week’s lower tail signals buying pressure is expected to resume for the week ahead. The Euro opened lower in the Sydney session, but is expected to continue this rally as we move to the London session.

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EURUSD 30-Minutes

Technical entry setups are drawn on the 30-minute time frame marking two potential demand zones. The 1.076~ price level marks the first zone to expect a long entry for a bullish rally upwards. As price is slowly selling off right now, this is a good indication of lackluster selling pressure until we reach an inexpensive zone for buyers to begin entries.

screenshot-at-feb-06-00-33-51
AUDUSD 30-Minutes

Although AUDUSD is not near  any daily levels, a similar pattern is present on the 30-minute time frame. This is another indication of lackluster selling pressure before we expect an explosive upside. However, I believe this movement will be delayed to Monday’s Sydney session. As we are now 7 hours into Sunday’s Sydney session (New York time), volatility has not picked up.

Additionally, the Reserve Bank of Australia’s rate statement and cash rate will be revealed in Monday’s Sydney session at 10:30pm. Current expectations is cash rate will remain unchanged.

screenshot-at-feb-06-00-55-25
COT Report: AUD

Another point of observation is the commitment of traders report. Australian Dollar net non-commerical positions continue to increase factoring into the long-term bullish expectations.

For now, these are the two currency pairs I am monitoring. Stay tuned for updated setups.

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