Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

Free Trading Guides
Subscribe
Please try again
Select

Live Webinar Events

0

Economic Calendar Events

0

Notify me about

Live Webinar Events
Economic Calendar Events

H

High

M

Medium

L

Low
More View More
US Dollar Clings onto Key Support Levels - Bounce Seems Likely

US Dollar Clings onto Key Support Levels - Bounce Seems Likely

David Rodriguez, Head of Product

Share:

- US Dollar testing critical support versus the Euro, Yen, British Pound

- A larger breakdown seems less likely given low FX volatility prices, suggests USD is a buy

- See more information on DailyFX on the Real Volume and Transactions indicators

Receive the Weekly Volume at Price report via David’s e-mail distribution list.

The US Dollar trades at critical support versus the Euro, Sterling, and Japanese Yen. Low forex volatility prices suggest that a larger breakdown remains unlikely.

EURUSD

Total Buy Volume Executed, Total Sell Volume Executed, Net Volume Executed (Buy-Sell)

Length of bar indicates the sum of Buy and Sell volume.

Data source: FXCM Real Directional Volume Indicator, Chart source: R. Prepared by David Rodriguez

The Euro has surged above major congestion at the $1.10 mark, but similarly substantial resistance starting at $1.12 marks another important test. Failure here would make $1.10 the next near-term target, while a break above $1.12 targets a move towards $1.14.

GBPUSD

Total Buy Volume Executed, Total Sell Volume Executed, Net Volume Executed (Buy-Sell)

Length of bar indicates the sum of Buy and Sell volume.

Data source: FXCM Real Directional Volume Indicator, Chart source: R. Prepared by David Rodriguez

The British Pound once again trades at substantial volume-based resistance at the $1.5650, and another failure would keep short-term focus on congestion support in the $1.54-1.55 range. Of course resistance can only hold so many times when consistently tested. A break above $1.5650 would likely lead the pair towards the June highs near $1.5800.

USDJPY

Total Buy Volume Executed, Total Sell Volume Executed, Net Volume Executed (Buy-Sell)

Length of bar indicates the sum of Buy and Sell volume.

Data source: FXCM Real Directional Volume Indicator, Chart source: R. Prepared by David Rodriguez

The Japanese Yen has rallied sharply against the US Dollar, and the USD/JPY now trades almost squarely at the top of a key volume-based congestion range near ¥123.50. Failure to hold above would leave near-term targets closer to major lows at ¥120.50. A hold above ¥123.50 would instead make continued gains towards ¥126.00 more likely.

AUDUSD

Total Buy Volume Executed, Total Sell Volume Executed, Net Volume Executed (Buy-Sell)

Length of bar indicates the sum of Buy and Sell volume.

Data source: FXCM Real Directional Volume Indicator, Chart source: R. Prepared by David Rodriguez

The Australian Dollar briefly broke to fresh lows versus the US Dollar before bouncing sharply, and the AUD/USD now trades at major volume-based resistance levels near $0.7400. Failure to close above would nonetheless leave focus on recent lows near $0.7250. A break above $0.7400 would instead target the bottom of a major volume-based congestion range near $0.7600.

GBPJPY

Total Buy Volume Executed, Total Sell Volume Executed, Net Volume Executed (Buy-Sell)

Length of bar indicates the sum of Buy and Sell volume.

Data source: FXCM Real Directional Volume Indicator, Chart source: R. Prepared by David Rodriguez

A sharp British Pound rally versus the Japanese Yen leaves it just short of key volume-based congestion levels near ¥195, and trading above said level makes major highs at ¥196 the next logical target. A failure to finish above volume-based resistance would shift our attention towards similar support at the top of a congestion range near ¥193.

EURJPY

Total Buy Volume Executed, Total Sell Volume Executed, Net Volume Executed (Buy-Sell)

Length of bar indicates the sum of Buy and Sell volume.

Data source: FXCM Real Directional Volume Indicator, Chart source: R. Prepared by David Rodriguez

The Euro broken sharply above major volume-based resistance versus the Yen at ¥137, and the move opens up a larger rally towards modest volume-based resistance at ¥140. Support is now former resistance at ¥137.

USDCHF

Total Buy Volume Executed, Total Sell Volume Executed, Net Volume Executed (Buy-Sell)

Length of bar indicates the sum of Buy and Sell volume.

Data source: FXCM Real Directional Volume Indicator, Chart source: R. Prepared by David Rodriguez

The US Dollar has pulled back sharply versus the Swiss Franc, and the sudden downturn leaves it almost squarely at major volume-based support near SFr0.9650. Failure to hold above here offers little in the way of comparable volume-based support until SFr0.9300. A successful hold above turns attention towards recent highs near SFr0.9900.

USDCAD

Total Buy Volume Executed, Total Sell Volume Executed, Net Volume Executed (Buy-Sell)

Length of bar indicates the sum of Buy and Sell volume.

Data source: FXCM Real Directional Volume Indicator, Chart source: R. Prepared by David Rodriguez

A notable pullback in the US Dollar leaves it at significant volume-based support versus the Canadian Dollar near the C$1.2900-1.2950 zone, and a failure to hold above would shift focus towards major congestion starting near C$1.2700. A successful rebound here would leave recent spike-highs near C$1.3200 as the logical short-term target.

NZDUSD

Total Buy Volume Executed, Total Sell Volume Executed, Net Volume Executed (Buy-Sell)

Length of bar indicates the sum of Buy and Sell volume.

Data source: FXCM Real Directional Volume Indicator, Chart source: R. Prepared by David Rodriguez

The New Zealand Dollar trades almost squarely at major volume-based congestion in the $0.6600-$0.6700 zone, and failure here keeps our focus on major lows closer to $0.6500.

--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com

Receive the Weekly Volume at Price via David’s e-mail distribution list.

Contact David via

Twitter at http://www.twitter.com/DRodriguezFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES