Bearish USD Setup Continues to Take Shape- AUD/JPY Range in Focus

By DailyFx | June 19, 2014 AAA

DailyFX.com -

Talking Points:

- Bearish USDOLLAR Setup Remains Favorable Following Dovish FOMC

- GBP/USD Rallies to Fresh High (1.7062); DailyFX SSI (-5.84) Favors Further Gains

- AUD/JPY to Eye Range Support on Another Failed Attempt to Close Above 96.00

Index

Last

High

Low

Daily Change (%)

Daily Range (% of ATR)

DJ-FXCM Dollar Index

10431.95

10447.06

10417.7

-0.09

86.20%

USDOLLAR(Ticker: USDollar):

  • Downward trending channel & bearish RSI remains in play as Federal Open Market Committee (FOMC) trims growth & inflation forecast.
  • With the break below soft support (10,440), next objective comes in at 10,406 (1.618% Fib expansion)
  • Will watch May (10,370) & October (10,354) lows as dollar carves lower-high in June.

GBP/USD:

  • Clears near-term resistance (1.7020-30) despite contraction in U.K. Retail Sales
  • BoE board member Ian McCafferty argues for early interest rate hike.
  • Still favor opportunities to ‘buying dips’ as next topside target comes in around 1.1710-20 (78.6% expansion).

AUD/JPY

  • Range play favored amid string of failed closes above 96.00 handle.
  • Weekly low (95.18) in focus amid Fibonacci confluence around 95.10-20.
  • Long-term bearish RSI momentum remains intact.

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

Bearish USD Setup Continues to Take Shape- AUD/JPY Range in Focus

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

Read More:

US Dollar Targets Fresh Lows versus Euro, Sterling for this Reason

Price & Time: Kiwi "Still Dancing"

USDOLLAR Daily

Bearish USD Setup Continues to Take Shape- AUD/JPY Range in Focus

Chart - Created Using FXCM Marketscope 2.0

  • Interim Resistance: 10,602 (38.2 retracement) to 10,615 (78.6 expansion)
  • Interim Support: 10,354 to 10,375 (50.0 retracement)

Release

GMT

Expected

Actual

Initial Jobless Claims (JUN 14)

12:30

313K

312K

Continuing Claims (JUN 7)

12:30

2600K

2561K

Philadelphia Fed. (JUN)

14:00

14.0

17.8

Leading Indicators (MAY)

14:00

0.6%

0.5%

Click Here for the DailyFX Calendar

comments powered by Disqus
Related Forex Analysis
  1. Weekly Trading Forecast: FX Traders Prepare for Heavy Volatility on FOMC, GDP and ...
    Forex News

    Weekly Trading Forecast: FX Traders Prepare for Heavy Volatility on FOMC, GDP and ...

  2. AUD Faces A Potential “Breakout” On US Heavy Event Risk
    Forex News

    AUD Faces A Potential “Breakout” On US Heavy Event Risk

  3. AUD/USD Remains Range-Bound As Dojis Highlight Hesitation
    Forex News

    AUD/USD Remains Range-Bound As Dojis Highlight Hesitation

  4. Pound to Fall on Ebbing BOE Rate Hike Bets if 3Q UK GDP Underperforms
    Forex News

    Pound to Fall on Ebbing BOE Rate Hike Bets if 3Q UK GDP Underperforms

  5. AUD/USD Technical Analysis: Still Looking for Direction
    Forex News

    AUD/USD Technical Analysis: Still Looking for Direction

Trading Center