Aug 13 – Top Forex Setups to Trade – Dollar Index Hit’s Initial Target
Arslan Butt • 2 min read
Welcome back to another exciting week.
On Monday, the financial markets can exhibit a thin volatility as there’s literally no major economic event scheduled for today. However, it will be nice to trade the choppy markets’ trading sessions to capture quick 25/30 pips in each trade. Who’s up for it?
Quick Update on the U.S. Dollar
The dollar index, that measures the performance of the Greenback against a basket of currencies, was little changed at 96.393 after climbing to its highest since early July 2017 at 96.505. It moved exactly in line with our forecast shared on Aug 09 – Can Dollar Index Violate Ascending Triangle on PPI today?
Dollar Index – Daily Chart (Aug 9)
Overall, the greenback generally had a positive week on the back of positive catalysts. The inflation figures continue to grow at the pace of 2%, supporting the sentiment that the Fed will go for additional two rate hikes in 2018.
Dollar Index – Daily Chart (Aug 13)
The dollar index has finally come out of an ascending triangle pattern to hit our initial target of $96.10. While the next target remains at $97.25.
USD/CAD – The Pair Enters The Overbought Zone
During the previous week, the USD/CAD was trading in the bearish channel which was providing it a strong resistance near $1.3000. The commodity currency managed to violate the pair on stronger dollar concerns.
At the moment, the USD/CAD is trading at $1.316, below the strong resistance level of $1.3195. On the 4- hour chart, the pair has entered the overbought zone. The RSI and Stochastics are holding near 90, suggesting an aggressive buying sentiment of investors.
USD/CAD – Key Trading Levels
Key Trading Level: 1.3152
USD/CAD – Trading Plan
Traders are advised to keep a closer eye on $1.3150 as above this level the USDCAD can stay bullish until $1.3180. The bearish violation of $1.3150 can lead the pair towards $1.3130. Good luck and stay tuned as more trade setups are on the cards…