DailyFX.com -

Talking Points:

- EUR/JPY at Risk for Lower-High as Focus Turns to ECB & BoJ Meetings

- Waiting for RSI Break on USD/CAD to Favor Downside Targets

- USDOLLAR Remains Overbought Ahead of Non-Farm Payrolls (NFP)

Index

Last

High

Low

Daily Change (%)

Daily Range (% of ATR)

DJ-FXCM Dollar Index

10539.76

10555.79

10523.34

0.12

124.65%

EUR/JPY:

  • Despite the downturn in risk sentiment, EUR/JPY continues to threaten former support around 137.70-90.
  • Need a turn in the Relative Strength Index (RSI) for confirmation/conviction of a lower-high as it threatens the bearish momentum from earlier this year.
  • European Central Bank (ECB) and Bank of Japan (BoJ) interest rate decisions may set the tone for the August trade as the Governing Council looks to implement more non-standard measures.

USD/CAD:

  • Sits at support from the beginning of the year around 1.0900-20, while the RSI struggles to push into overbought territory.
  • A bearish break in the oscillator should highlight a near-term topping process in the USD/CAD.
  • DailyFX Speculative Sentiment Index shows retail crowd has turned net-short USD/CAD this week as the ratio stands at -1.90.

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

EUR/JPY Remains Capped by Former Support; Lower-High in Place?

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

Read More:

Price & Time: The Longer-Term Implications of Recent USD Strength

USD/JPY Fueling Broader USD Breakout; EUR/USD Weak Under 1.3400

USDOLLAR Daily

EUR/JPY Remains Capped by Former Support; Lower-High in Place?

Chart - Created Using FXCM Marketscope 2.0

USDOLLAR(Ticker: USDollar):

  • Dow Jones-FXCM U.S. Dollar Index remains overbought as it threatens the next topside objective around 10,555-10,561.
  • Need to see the RSI break down from the bullish trend for a near-term pullback; looks as though a more bullish outlook will take shape as the Fed remains on course to halt its quantitative easing (QE) program in October; when will markets start to price it in?
  • Beyond Non-Farm Payrolls (+231K), we will keep a close eye on Average Weekly Earnings (2.2%) as Chair Janet Yellen continues to highlight the slack in the labor market.
  • Interim Resistance: 10,555 (50.0% retracement) to 10,561 (100% retracement)
  • Interim Support: 10,354 (Oct. low) to 10,375 (50.0& retracement)

Release

GMT

Expected

Actual

Challenger Job Cuts (YoY) (JUL)

11:30

--

24.4%

Employment Cost Index (2Q)

12:30

0.5%

0.7%

Initial Jobless Claims (JUL 26)

12:30

300K

302K

Continuing Claims (JUL 19)

12:30

2492K

2539K

NAPM-Milwaukee (JUL)

13:00

61.00

63.87

Chicago Purchasing Manager (JUL)

13:45

63.0

52.6

Click Here for the DailyFX Calendar

Related Articles
  1. 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.
  2. 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 ...
  3. Forex

    Top U.S Forex News Sites

    Breaking news moves forex markets. Here are the top U.S. sites for tracking forex news.
  4. 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.
  5. 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.
  6. 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.
  7. 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.
  8. Entrepreneurship

    Top Forex Trading Apps

    A brief overview of the top apps that help forex traders with on time information, charts and more.
  9. 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?
  10. Forex News

    How The Forex "Fix" May Be Rigged

    When it comes to forex, some types of "fixes" are legal. But some really aren't.
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!