Talking Points
Index | Last | High | Low | Daily Change (%) | Daily Range (% of ATR) |
DJ-FXCM Dollar Index | 10602.65 | 10617.14 | 10593.35 | 0.06 | 82.26% |
- Rebounds from 1.6600 as Bank of England (BoE) Minutes shows 7-2 vote count, with Martin Weale & Ian McCafferty dissenting against the majority.
- Despite the greater rift in the BoE, GBP/USD struggles to retrace the decline from the weaker-than-expected U.K. Consumer Price report.
- The DailyFX Speculative Sentiment Index (SSI) suggests that the GBP/USD remains vulnerable to further losses as retail crowd is mostly net-long the dollar, with the ratio standing at +1.52.
- Rallies to fresh monthly high of 103.39 after closing above the key 102.80-90 zone, with the Relative Strength Index (RSI) pushing above 70; first overbought reading since December 2013.
- May retrace the entire decline from the April high (104.11) on a break & close above 103.30-50.
- As the upward trending channel taking shape, will look for a higher-low on a near-term correction.
Chart - Created Using FXCM Marketscope 2.0
US DOLLAR
- Dow Jones-FXCM U.S. Dollar Index climbs to a fresh monthly high of 10,616 after closing above the key 10,590 pivot, with the RSI pushing back into overbought territory.
- May see former support (10,615) act as new resistance, especially if the Federal Open Market Committee (FOMC) Minutes fail to prop up interest rate expectations.
- Need a bearish break in the RSI to look for a more meaningful USDOLLAR correction.
- Interim Resistance: 10,602 (38.2% retracement) to 10,615 (78.6% expansion)
- Interim Support: 10,440 (78.6% retracement) to 10,450 Pivot
Release | GMT | Expected | Actual |
FOMC Meeting Minutes | 14:00 |
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--- Written by David Song, Currency Analyst
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