GBP/USD Breaks Out of Bearish Momentum Ahead of BoE Minutes
Talking Points:
- USDOLLAR Continues to Carve Lower-Highs in June
- GBP/USD Breaks Out Ahead of Bank of England (BoE) Minutes
- NZD/USD Clears Long-Term Bearish Momentum; Higher-High on Tap?
The Dow Jones-FXCM U.S. Dollar Index (Ticker: USDollar) is struggling to hold its ground following the slew of dismal data coming out of the world’s largest economy, and the greenback may continue to give back the rebound from May (10,370) as the reserve currency carves a series of lower-highs in June.
|
Index |
Last |
High |
Low |
Daily Change (%) |
Daily Range (% of ATR) |
|
DJ-FXCM Dollar Index |
10473.27 |
10496.16 |
10472.28 |
-0.20 |
75.84% |
As a result, the dollar remains at risk of carving fresh monthly lows ahead of the Federal Open Market Committee (FOMC) meeting on June 18, and the bearish sentiment surrounding the greenback may gather pace ahead of the second-half of the year as Fed Chair Janet Yellen remains in no rush to normalize monetary policy.
With that said, we are likely to get more of the same from the FOMC, and we continue to favor ‘selling bounces’ in the dollar as the bearish momentum in the Relative Strength Index (RSI) gathers pace.
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Read More:
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EURAUD at Fresh 2014 Lows- Reversal Risk High Above 1.4420/40
USDOLLAR Daily
Chart - Created Using FXCM Marketscope 2.0
- Continues to Carve Lower-Highs; Bearish RSI Favors Downside Targets
- 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 |
|
Advance Retail Sales (MAY) |
12:30 |
0.6% |
0.3% |
|
Advance Retail Sales ex Autos (MAY) |
12:30 |
0.4% |
0.1% |
|
Advance Retail Sales ex Auto and Gas (MAY) |
12:30 |
0.4% |
0.0% |
|
Advance Retail Sales Control Group |
12:30 |
0.4% |
0.0% |
|
Import Price Index (MoM) (MAY) |
12:30 |
0.2% |
0.1% |
|
Import Price Index (YoY) (MAY) |
12:30 |
0.5% |
0.4% |
|
Initial Jobless Claims (JUN 7) |
12:30 |
310K |
317K |
|
Continuing Claims (MAY 31) |
12:30 |
2605K |
2614K |
|
Business Inventories (APR) |
14:00 |
0.4% |
0.6% |
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--- Written by David Song, Currency Analyst
To contact David, e-mail [email protected]. Follow me on Twitter at @DavidJSong.
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