Talking Points
- Dollar breakdown testing confluence support post FOMC
- Updated targets & invalidation levels on USDOLLAR
- Event Riskon TapThis Week
USDOLLAR Daily
Chart Created Using FXCM Marketscope 2.0
Technical Outlook
- USDOLLAR breaks pitchfork support– tests key support at 11731/37
- Interim resistance at the ML off the highs / 11839 backed by 11880/87 (bearish invalidation)
- Break lower targets support objectives at 11681 & the May lows
- Daily RSI reversal at 60 &- break sub-50 (bearish)
- Momentum approaching 40 support- break to validate short-bias
- Event Risk Ahead:Housing Data & Final Read on 1Q GDP next week
USDOLLAR 30min
Notes: An update to the setup published on June 3rd- The USDOLLAR posted an outside reversal candle yesterday on the back of the FOMC Interest Rate announcement with the decline breaking below the weekly opening range / key support at 11839/43. The index has responded to confluence support at the 11731 with a rebound today in New York testing former median-line parallel support (now interim resistance) into the close of the session.
Bottom line: the broader short-bias remains in play below the weekly ORL at 11839 with only a breach above 11880/87 shifting the focus back to the topside. We’ll be looking to sell rallies / short-triggers with a break sub-11731 targeting objectives at 11681 & 11634.
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Relevant Data Releases
Other Setups in Play:
- Scalp Webinar: Bearish USD Technical Outlook to Face Upbeat FOMC
- USDCAD Breakdown at Initial Support- Short Scalps Favored Sub 1.24
- EURNZD Threatens Key Resistance Ahead of RBNZ- Longs at Risk Sub 1.59
- Scalp Webinar: NFP Fails to Spur USD Breakout- June Range Remains Key
- USDOLLAR Flirts with Breakdown- Short Scalps Favored Sub 11960 Ahead of NFPs
---Written by Michael Boutros, Currency Strategist with DailyFX
Follow Michaelon Twitter @MBForex,contact him at mboutros@dailyfx.com or Click Here to be added to his email distribution list
Join Michael for Live Scalping Webinars on Mondays on DailyFX at 12:30 GMT (8:30ET)
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