DailyFX.com -

Talking Points:

- USDOLLAR Technical Outlook Remains Bearish Ahead of FOMC Meeting

- GBP/AUD at Risk for Key Break Going Into RBA, BoE Minutes

- EUR/NZD Rebound to Generate Lower-High; Former Support in Focus

The Dow Jones-FXCM U.S. Dollar Index (Ticker: USDollar) is struggling to push back above the 10,470 pivot amid the slew of dismal developments coming out of the world’s largest economy, and the greenback may face further headwinds in the week ahead should the Federal Open Market Committee (FOMC) continue to highlight a dovish tone for monetary policy.





Daily Change (%)

Daily Range (% of ATR)

DJ-FXCM Dollar Index






Despite expectations for another $10B taper, we may get more of the same with the FOMC’s June 18 interest rate decision as Chair Janet Yellen remains reluctant to move away from the highly accommodative policy stance, but the updated forecasts (growth, inflation & the interest rate) may foster an improved outlook for the reserve currency should we see a growing number of central bank officials show a greater willingness to normalize monetary policy sooner rather than later.

With that said, the dollar may continue to carve lower-highs & lower-lows during the summer months unless we see a material shift in the Fed’s policy outlook, and we will retain a bearish outlook for the reserve currency as the downward trend in the Relative Strength Index (RSI) gathers pace.

Bullish Pound Outlook Favored Ahead of BoE- GBP/AUD Risks Major Break

Join DailyFX on Demandto Cover Current U.S. dollar Trade Setups

Read More:

Price & Time: Keep A Close Eye on Gold

Pre-Fed Price Action Favors GBP/USD Breakout, EUR/USD Outside Bar


Bullish Pound Outlook Favored Ahead of BoE- GBP/AUD Risks Major Break

Chart - Created Using FXCM Marketscope 2.0

  • Bearish RSI Momentum Remains in Focus; 10,470 Pivot to Hold as Resistance?
  • Interim Resistance: 10,602 (38.2 retracement) to 10,615 (78.6 expansion)
  • Interim Support: 10,354 to 10,375 (50.0 retracement)





Producer Price Index (MoM) (MAY)




Producer Price Index (YoY) (MAY)




Producer Price Index ex Food and Energy (MoM) (MAY)




Producer Price Index ex Food and Energy (YoY) (MAY)




U. of Michigan Confidence (JUN P)




Click Here for the DailyFX Calendar

Related Articles
  1. Investing News

    China’s Forex Reserves Dropped Significantly

    China’s forex​ reserves dropped by a record $93.9 billion at the end of August to $3.56 trillion because the Central Bank has been selling dollars to provide a cushion to the falling yuan​
  2. 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.
  3. 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.
  4. 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 ...
  5. Forex

    Top U.S Forex News Sites

    Breaking news moves forex markets. Here are the top U.S. sites for tracking forex news.
  6. 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.
  7. 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.
  8. 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.
  9. 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.
  10. Entrepreneurship

    Top Forex Trading Apps

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

You May Also Like

Trading Center