Weekly Technical Outlook Summary
By Michael Boutros, Sr. Technical Strategist
Date: October 26, 2026
Overview
This article provides a technical analysis of key currency pairs, commodities, and equity indices as the market approaches significant economic events, including the Federal Reserve's interest rate decision.
US Dollar (DXY) Analysis
The US Dollar Index has seen a decline of over 1.4% from yearly highs after a rally of 4.4% from September lows. The recent pullback found support at 101.46, with resistance at 102.37 and the yearly high close at 102.53. A break below October lows could indicate a larger correction, with support levels at 101.27 and 100.75.
The upcoming Federal Reserve meeting is crucial, with a 90% probability of maintaining current rates. Market reactions will depend on the Fed's guidance and upcoming economic data.
British Pound (GBP/USD) Analysis
The British Pound has rallied over 2.1% from monthly lows but faced resistance at 1.3406. Current support is at 1.3353, with critical levels at 1.3245 and 1.3194. A breach above 1.3406 is necessary for an uptrend continuation, while a drop below 1.33 could signal a deeper setback.
The UK Budget announcement is expected to be overshadowed by the Fed's decisions and US inflation data.
Canadian Dollar (USD/CAD) Analysis
The USD/CAD pair has dropped over 2.3% from monthly highs, with resistance at 1.4083 and support at 1.4011. A close below 1.3942 could indicate a continuation of the downtrend. The Bank of Canada and Federal Reserve rate decisions are key events to watch this week.
Economic Calendar
Key economic events this week include the Federal Open Market Committee (FOMC) meeting, European Central Bank (ECB) meeting, Bank of Canada (BoC) meeting, and the US Personal Consumption Expenditures (PCE) report.