Key technical levels to watch

For EURUSD, the 1.0800 level is acting as a psychological barrier and immediate resistance. If buyers fail to reclaim this zone, the pair could revisit support around 1.0720, with 1.0680 being a secondary downside level to monitor. On the upside, a sustained breakout above 1.0800 may open the door to 1.0860.

This week, key technical levels across the major forex pairs are shaping up to offer potential trading opportunities. Starting with the US Dollar Index (DXY), a critical resistance zone lies near the 105.10 level. A break above this could clear the path toward the 105.60 region, while support remains firm at 104.20, with a deeper pullback possible to 103.80 if bearish pressure increases.

USDCHF remains in a tight range, consolidating just below 0.9150. A breakout above this level could send the pair toward 0.9220. On the downside, 0.9060 is acting as strong support for now, and a break below it may invalidate the bullish bias.

For GBPUSD, the focus is on a breakout strategy as the pair consolidates below 1.2630. A daily close above this level, especially following UK inflation data, could justify a long setup toward 1.2700 or 1.2750. Alternatively, if price fails to hold 1.2530 support, short trades targeting 1.2475 may be considered, ideally with confirmation from a bearish candlestick pattern or increased selling volume.

EURUSD remains under bearish pressure, having failed to break above 1.0800 resistance last week. Key support sits around 1.0700, and if that level breaks, we could see a move toward 1.0650. Bulls will need to reclaim 1.0820 for any meaningful recovery to take shape.

Major currency pair analysis

In USDCHF, a continuation strategy may be appropriate. Long positions on a break and close above 0.9130 could aim for 0.9180 and 0.9220, with a protective stop below 0.9060. For more conservative traders, a pullback toward the 0.9060–0.9000 support area could offer a better entry point, particularly if bullish price action confirms support is holding.

USDCHF is in a consolidation phase, but I’m favouring buying dips while above 0.9060. A daily close above 0.9150 would be my cue to enter long, targeting 0.9220. Stops would be placed just below 0.9100 to manage risk, given the tight trading range.

AUDUSD continues to hover near multi-week lows. The pair is struggling below 0.6600, and sellers are eyeing a move toward 0.6520 support. Any upside retracement toward 0.6650 is likely to encounter strong resistance. The broader trend remains under pressure while below 0.6700.

AUDUSD remains in a vulnerable technical position, and traders may look for short setups on any failed attempt to reclaim 0.6650. Bearish confirmation near this level could set the stage for a move back toward 0.6520 or even 0.6480 if risk-off sentiment intensifies. On the flip side, a clear break above 0.6650 may shift the bias to the upside, and long entries could be explored with 0.6700 as the initial target.

The USDCHF pair is showing signs of bullish continuation, bolstered by rising U.S. yields and safe-haven flows. The 0.9130 resistance remains a key level to break for upside confirmation. If successful, traders could target the next level at 0.9180, and potentially 0.9220. However, a drop below 0.9060 could bring the 0.9000 psychological support back into play, where buyers could re-enter the market.

Trading strategy for the upcoming week

GBPUSD is currently consolidating just below a key resistance at 1.2630. A close above this level could trigger bullish momentum toward 1.2700. Support is noted at 1.2530, with the next lower level near 1.2475 if selling pressure increases.

For EURUSD, the path of least resistance remains lower. I’ll be monitoring for short opportunities on any bounce into the 1.0770–1.0800 zone, ideally with bearish confirmation on lower timeframes. However, if we see a break back above 1.0820, I’ll reassess the short bias and stay flat until a new trend emerges.

Finally, AUDUSD is holding above the 0.6570 support level, which aligns with short-term trendline support. A loss of this level could see price extend lower toward 0.6520. Bulls will be looking for a move above 0.6650 to indicate renewed upside strength, with an eye on the 0.6700 level as a potential near-term target.

This week’s trading strategy is centred around cautious positioning and tactical entries, particularly as several major currency pairs approach key technical inflection points. For the US Dollar Index (DXY), the strategy leans bullish, provided the price can close above the 105.10 resistance zone. A sustained breakout here may warrant long positions targeting the 105.60–106.00 range. However, if momentum falters, traders should consider short-term countertrend trades back toward 104.50, using tight stops to manage risk.

AUDUSD continues to trade within a broader downtrend, although short-term support at 0.6570 is still holding. The Aussie dollar has been weighed down by weaker Chinese data and declining commodity prices, both of which tend to impact Australian exports. A break below 0.6570 could expose 0.6520, and further losses may target 0.6480. On the upside, bulls will need to clear 0.6650 to shift momentum, with 0.6700 as the next likely objective.

This week’s trading strategy favours a reactive approach, using predefined levels and breakout/pullback signals to guide entries and exits. With key economic data scheduled throughout the week — including central bank commentary and inflation releases — traders should remain nimble and adjust their exposure accordingly.

Key technical levels and setups

Looking at USDCHF, resistance is building near 0.9130. A clean break above could extend gains to 0.9180. On the downside, watch for initial support at 0.9060, with stronger demand likely to emerge around the 0.9000 handle.

This week’s trading strategy leans cautiously bullish for the US Dollar, with momentum still favouring upside continuation—especially if the DXY holds above 105.30. I’m looking to stay long-biased on USD strength, but only if we don’t see a decisive break below 104.70, which would put the dollar’s momentum into question.

For AUDUSD, the bearish trend remains intact, and I’ll look to sell any rallies into the 0.6600–0.6650 area. The key level for sellers to defend is 0.6700. A clean break above that would invalidate the short setup. Downside targets remain 0.6520 and 0.6480 if weakness continues.

GBPUSD tested resistance near 1.2630 but failed to close above it, reinforcing the short-term bearish bias. Support lies at 1.2500, and a breakdown below this level may trigger further downside toward 1.2440. Watch for a clean break above 1.2630 to signal renewed upside potential.

GBPUSD is still range-bound, but with a bearish tilt. A break below 1.2500 would confirm the downside setup, and I’d look to short toward 1.2440 or even 1.2380 on momentum. If 1.2630 is reclaimed and held, it would invalidate the bearish outlook and possibly set up a long toward 1.2700.

Weekly outlook and trading strategy

With EURUSD still under bearish pressure, a sell-the-rally approach remains favourable. Short entries near 1.0800, especially if met with rejection, could offer good risk-reward setups for a move toward 1.0720 and possibly 1.0680. Should the pair break above 1.0800 with conviction, traders may consider flipping bias and eyeing 1.0860 as the next target, but only with confirmation from volume and momentum indicators.

In EURUSD, the pair remains under pressure as eurozone economic data continues to lag expectations. Despite a brief attempt to reclaim the 1.0800 level, the pair failed to hold gains and retreated toward 1.0730. Continued rejection at 1.0800 could reinforce bearish sentiment, with a retest of 1.0680 likely. Traders should also monitor any ECB commentary this week, as dovish tones may further weaken the euro.

The US Dollar Index (DXY) has continued to show resilience, supported by stronger-than-expected U.S. data and hawkish commentary from the Federal Reserve. Last week’s bounce from the 104.20 support zone reinforces the bullish structure, and price action is now testing the 105.10 resistance level. A decisive break above this area could open the way for a rally toward 105.60 and potentially 106.00. However, if momentum stalls, traders should watch for a potential pullback toward the 104.50 region in the short term.

The US Dollar Index (DXY) continues to show strength, holding above the critical 105.00 level. A sustained move above 105.30 could open the door to a retest of the April highs around 106.00. However, a break below 104.70 would signal potential weakness, possibly drawing price back to the 104.00 support zone.

GBPUSD is trading in a relatively tight range, consolidating beneath the 1.2630 resistance. With UK inflation data due later in the week, volatility could increase. A bullish breakout above 1.2630 could see the pair push towards 1.2700 and possibly 1.2750. On the flip side, failure to hold above 1.2530 could trigger a deeper move toward the 1.2475 support area, which has held firm recently.

• Watch for USD strength to remain dominant if the DXY holds above 105.30.
• Focus on short setups for EURUSD and AUDUSD while they remain below key resistance zones.
• GBPUSD bias stays bearish while trading below 1.2630.
• USDCHF offers potential breakout setups, with key levels at 0.9150 and 0.9060.

Patience is key this week—wait for confirmation at key levels before entering trades. The market remains driven by USD flows and potential shifts in risk sentiment.