DailyFX.com -

Talking Points:

- USDOLLAR Risks Another Lower-High as Bearish RSI Momentum Takes Shape

- GBP/USD to Benefit From U.K. Jobless Claims; Higher-Low in Place?

- EUR/NZD Needs Hawkish RBNZ to Mark Fresh 2014 Lows

The Dow Jones-FXCM U.S. Dollar Index (Ticker: USDollar) show a limited reaction to the positive data prints coming out of the world’s largest economy, and the greenback remains at risk of carving another series of lower-highs & lower-lows over the near-term as the Federal Open Market Committee (FOMC) is widely expected to retain its current approach for monetary policy at the June 18 meeting.

Index

Last

High

Low

Daily Change (%)

Daily Range (% of ATR)

DJ-FXCM Dollar Index

10506.46

10507.31

10483.77

0.09

77.44%

Indeed, the lack of momentum to trade back above former support suggests that the near-term correction is coming to an end, and the greenback may continue to give back the rebound from back in May (10,370) as the bearish momentum on the Relative Strength Index (RSI) takes shape.

As a result, we continue to look for opportunities to ‘sell bounces’ in the dollar, and the reserve currency may weaken further during the summer months as the fundamental developments coming out of the U.S. economy have a limited impact in spurring a material shift in the Fed’s policy outlook.

EUR/NZD Risks Bearish Break on RBNZ; GBP/USD Carving Higher-Lows?

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

Read More:

Price & Time: Making the Contrarian Case For Silver

Crude Oil Nears Key Resistance, Copper Drops Ahead of China Data

USDOLLAR Daily

EUR/NZD Risks Bearish Break on RBNZ; GBP/USD Carving Higher-Lows?

Chart - Created Using FXCM Marketscope 2.0

  • Bearish RSI Raises Risk for Lower-Highs & Lower-Lows
  • 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

NFIB Small Business Optimism (MAY)

11:30

95.8

96.6

Wholesale Inventories (APR)

14:00

0.6%

1.1%

Wholesale Trade Sales (MoM) (APR)

14:00

0.9%

1.3%

Click Here for the DailyFX Calendar

Related Articles
  1. Forex Education

    Four Currencies Under the Spotlight in 2016

    With currencies having become the “tail that wags the dog,” in terms of their impact on the global economy, these four currencies will be under the spotlight in 2016.
  2. Forex Fundamentals

    These Currencies Are The Biggest Losers Of The Stock Downturn

    Here’s a list of the hardest-hit currencies amid the global stock market mayhem.
  3. Forex Strategies

    Will the Euro Continue to Rally? (EUO)

    The euro is rallying. Should investors chase this performance or is the real opportunity on the other side of the trade?
  4. 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​
  5. 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.
  6. 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.
  7. 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 ...
  8. Forex

    Top U.S Forex News Sites

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

    Financial News Comparison: Bloomberg Vs. Reuters (BAC, GOOG)

    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.
  10. 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.
COMPANIES IN THIS ARTICLE
Trading Center