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

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

    Top U.S Forex News Sites

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

    Top Forex Trading Apps

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