The following are the long-term technical outlooks for USD Index (DXY), EUR/USD, USD/JPY, and USD/CAD as provided by the technical strategy team at SEB Group.

USD Index (DXY): The up-trend remain paused with the market still digesting the break above the 1985 Plaza accord topline. With consistently higher lows during the past months we see upward pressure again raising a prelude to exiting the consolidation range and continuing the underlying bull trend. The next objective exiting the range will be 103.75, the 161.8% Fibo projection point of the 2008/2009 advance.

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EUR/USD: Like the ECB EUR index €/$ remain in a multi-month congestion range. The primary target for an upward reaction, 1.15-ish, has basically been met hence downside risk should again be on the rise. To force us to abandon a medium-long term bearish stance the pair must return above the broad resistance zone.  

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USD/JPY: The decline from the June top to the July bottom has in a daily chart occurred in what appears to be a three wave corrective pattern. The decline also erased some of the worst stretches so a new attempt higher will find it a lot easier to find staying power above the 2007 top (and by doing so indicating a possible extension towards the 2002 top around 135.

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USD/CAD: After a great rally in July passing the prior tops from late 2014/early 2015 the pair has finally arrived in a long term target zone (our primary target for the past years rally). If playing out according to our plan the pair should move slightly higher (to 1.3423?) before stalling and starting a larger correction. Long term longs should consider taking profit in the 1.3066 -1.3423 area.

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