USD Threatens Bearish Setup Ahead of FOMC- NZD/USD in Focus on 1Q GDP

By DailyFx | Updated July 30, 2014 AAA

DailyFX.com -

Talking Points:

- USDOLLAR Continues to Threaten Bearish Formation Ahead of FOMC

- GBP/USD Outlook Remains Bullish Despite Unanimous BoE Vote

- NZD/USD Risks Fresh Highs on Dovish Fed, New Zealand 1Q GDP

Index

Last

High

Low

Daily Change (%)

Daily Range (% of ATR)

DJ-FXCM Dollar Index

10470.92

10481.95

10466.56

-0.05

48.64%

USDOLLAR(Ticker: USDollar):

  • Fed’s updated projects for growth, inflation and interest rate will be key focus.
  • With USDOLLAR threatening trendline resistance, we need a bullish break in the Relative Strength Index (RSI) to favor topside targets.
  • At risk for lower-low on dovish statement from Federal Open Market Committee (FOMC).

GBP/USD:

  • Despite unanimous vote, BoE continues to show greater willingness to normalize monetary policy sooner rather than later
  • Seems as BoE Favors Stronger British Pound as it helps to achieve price stability.
  • Favor ‘buying dips’ as we look for a higher-low.

NZD/USD

  • Remains capped by 0.8690-0.8700 (78.6% retracement), but breaks out of bearish RSI momentum
  • Former trendline resistance on RSI appears to be offering support
  • A pickup in New Zealand 1Q GDP (1.1%) could heighten rate hike expectations for the Reserve Bank of New Zealand’s (RBNZ) July 23 meeting.

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

USD Threatens Bearish Setup Ahead of FOMC- NZD/USD in Focus on 1Q GDP

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

Read More:

Price & Time: Don’t Forget About Switzerland

Running of the Bull: How FOMC Can Spark a USD Rally

USDOLLAR Daily

USD Threatens Bearish Setup Ahead of FOMC- NZD/USD in Focus on 1Q GDP

Chart - Created Using FXCM Marketscope 2.0

  • Looking for Resumption of Bearish Trend on Dovish FOMC
  • 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

Current Account Balance (1Q)

12:30

-$97.0B

-$111.2B

Former Fed Chairman Bernanke Speaks on U.S. Economy

17:45

Fed QE3 Pace

18:00

$35B

Fed Pace of Treasury Purchases

18:00

$20B

Fed Pace of MBS Purchases

18:00

$15B

Federal Open Market Committee Interest Rate Decision

18:00

0.25%

Fed Chair Janet Yellen Holds Press Conference

18:30

Click Here for the DailyFX Calendar

You May Also Like

COMPANIES IN THIS ARTICLE
Related Forex Analysis
  1. Forex News

    US Dollar May Rise if Home Sales Top Estimates, Boosting Fed Outlook

  2. Forex News

    NZD/USD Technical Analysis: Treading Water Near 0.77

  3. Investing

    NZD/USD Struggles During Last Trade

  4. Forex News

    Yen Down on Risk Appetite Swell But Year-End Flows May Fuel Turn

  5. Forex News

    NZD/USD Technical Analysis: Waiting for Direction Cues

Trading Center