Mid-Week Technical Outlook: FX Majors & Indices

• USD Index smashes into 101.50
• EURUSD challenges fresh resistance
• GBPUSD bulls switch into higher gear
• SPX500_m approaches key resistance
• NQ100_m ready to breakout?

The dollar extended losses while stocks nudged higher on Wednesday ahead of key US inflation data that could influence the Federal Reserve’s policy stance.

Attention will also be directed towards the pending Bank of Canada rate decision, speeches from numerous Fed officials, and big risk events including earning announcements by US banks on Friday.

In the meantime, here are some technical setups to keep an eye on this week:

USD Index smashes into 101.50

The dollar remains under pressure on the daily timeframe with prices trading marginally below 101.50 as of writing. Sustained weakness below this level may open a path toward 101.10 and 100.72, respectively. Should 101.50 prove to be reliable support, a rebound back toward 102.35 could be on the cards.

EURUSD tests fresh resistance

A weaker dollar has propelled the EURUSD to levels not seen since early May around 1.1032. Prices are firmly bullish on the daily charts with a breakout above 1.1032 opening a path towards 1.1090. Should bulls run out of steam, a decline back towards 10950 and 1.0900 may be on the table.

GBPUSD bulls back in town

The GBPUSD hit a fresh 2023 high this morning. Prices remain firmly bullish on the daily charts as there have been consistently higher highs and higher lows. A solid breakout and daily close above 1.3000 could open the doors towards 1.3110. Should 1.3000 prove to be strong resistance, prices may slip back towards 1.2840.

NZDUSD trapped within a range

It was a choppy affair for the NZDUSD after New Zealand’s central bank left interest rates unchanged for the first time in almost two years. The currency pair spiked towards 0.6240 before giving back gains. Prices remain trapped within a range with support around 0.6100 and resistance at 0.6240. A breakout above 0.6240 may see an incline towards 0.6310. Should prices slip back under 0.6100, we could see 0.6000.

USDJPY tumbles towards 138.80

A weaker dollar has sent the USDJPY tumbling toward the 138.80 support level. A breakdown below this point could see a further selloff towards 138.00 and the 200-day SMA around 137.10. Should prices rebound from 138.80, we could see 141.00 and higher.

SPX500_m approaches resistance

Prices remain bullish on the daily charts. A strong breakout above 4463 could inspire an incline towards 4500. Should bulls lack the strength to conquer 4463, prices may descend back within the range with 4332 acting as the next key level of interest.

NQ100_m breakout pending?

The NQ100_m could be gearing for a breakout on the daily charts if prices push beyond 15300. A solid close above this point may encourage an incline towards 15700. Any signs of weakness in the uptrend could see prices retest 14965 and 14670, respectively.

EURUSD GBPUSD NZDUSD USDJPY SPX500_m NQ100m Federal Reserve inflation Bank of Canada