DailyFX.com -

Talking Points:

- AUD/USD Eyes 0.9200 Support Ahead of Australia, China Data

- USD/CAD Risks Larger Correction Amid Bearish RSI Break

- USDOLLAR Continues to Test Near-Term Resistance; Fed Doves on Tap

Index

Last

High

Low

Daily Change (%)

Daily Range (% of ATR)

DJ-FXCM Dollar Index

10552.23

10553.31

10544.32

0.07

32.35%

AUD/USD:

  • The bearish trend in price & the Relative Strength Index (RSI) favors downside targets; 0.9200 handle remains key support.
  • Need to closely watch interest rate expectations as Reserve Bank of Australia (RBA) lowers growth, inflation forecast.
  • Nevertheless, DailyFX Speculative Sentiment Index (SSI) shows retail crowd remains net-long on AUD/USD in August, with the ratio standing at +1.79.

USD/CAD:

  • Risks larger correction as USD/CAD appears to be carving near-term top ahead of 1.1000; waiting for a bearish RSI break to materialize for confirmation & conviction.
  • Will look for longer-term opportunities to ‘buy dips’ in USD/CAD as pair retains bullish trend from 2013; Bank of Canada (BoC) to preserve relatively dovish tone for monetary policy.
  • Seems as though BoC Governor Stephen Poloz is in no rush to normalize; does not want to get too ahead of the Federal Open Market Committee (FOMC).

For more updates, sign up for David's e-mail distribution list.

AUD/USD 0.9200 Support in View; USDOLLAR Vulnerable to Fed Doves

Join DailyFX on Demand for Real-Time SSI Updates Across the Majors!

Read More:

USDJPY Long Term Channel in Focus for Rest of August

US Dollar Coils for Next Leg - Setups in EUR/USD, GBP/USD, USD/CHF

USDOLLAR Daily

AUD/USD 0.9200 Support in View; USDOLLAR Vulnerable to Fed Doves

Chart - Created Using FXCM Marketscope 2.0

USDOLLAR(Ticker: USDollar):

  • Dow Jones-FXCM U.S. Dollar Index at risk for a more meaningful pullback as it carves near-term top around 10,555-561.
  • Failure to maintain bullish RSI momentum to provide conviction/confirmation for larger correction; will look for higher-low as it breaks out of the downward trend from earlier this year.
  • William Dudley & Eric Rosengren are scheduled to speak ahead of the Fed Symposium in Jackson Hole, Wyoming.
  • Interim Resistance: 10,555 (50.0% retracement) to 10,561 (100% retracement)
  • Interim Support: 10,440 (78.6% retracement) to 10,450 Pivot

Release

GMT

Expected

Actual

No Scheduled Releases

Click Here for the DailyFX Calendar

Related Articles
  1. Forex

    The Pros and Cons of a Fully Convertible Rupee

    Amid the rising economic power of India, the talks of making the Indian currency fully convertible are gaining momentum. We look at the pros and cons.
  2. Forex Fundamentals

    Chinese Yuan an Unlikely Reserve Currency

    As the world's second largest economy, China's challenge to America’s dominance includes a push to make the yuan (RMB), the world’s reserve currency. Whether it can do that now is unclear.
  3. Economics

    How Currency Enforcement Helped Sink The Trans-Pacific Partnership (TTP)

    One particular barrier to trade that has received much attention of late and caused delays in negotiations of the TPP is exchange-rate manipulation, by which a country artificially devalues its ...
  4. Forex

    Top U.S Forex News Sites

    Breaking news moves forex markets. Here are the top U.S. sites for tracking forex news.
  5. Investing

    Financial News Comparison: Bloomberg Vs. Reuters

    Access to financial information has grown with the expansion of digital news. Bloomberg and Thomson Reuters lead the pack, claiming a majority of the business information market.
  6. Economics

    Who Benefits From South Korea's Lowered Interest Rates?

    South Korea is the latest country to cut interest rates in an attempt to stimulate economic growth.
  7. Forex Education

    The Top Uses For P2P Currency Exchange

    Peer-to-peer (P2P) currency exchange networks offer a viable and cheaper alternative for buying and selling currencies.
  8. Forex

    Steps To Open An Offshore Forex Account

    Here is a simple breakdown of how to open an offshore forex account for US-based users, including legal requirements.
  9. Entrepreneurship

    Top Forex Trading Apps

    A brief overview of the top apps that help forex traders with on time information, charts and more.
  10. Investing Basics

    The Risks Of Buying Bitcoin

    Virtual currency is probably here to stay, but what about Bitcoin specifically? Does it have a first-to-market advantage? What are the risks involved?
RELATED TERMS
  1. No results found.

You May Also Like

COMPANIES IN THIS ARTICLE
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!