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USD Shorts Remained Favored on FOMC Sell Off- Key Support 11,731

USD Shorts Remained Favored on FOMC Sell Off- Key Support 11,731

Michael Boutros, Strategist

Talking Points

  • Dollar breakdown testing confluence support post FOMC
  • Updated targets & invalidation levels on USDOLLAR
  • Event Riskon TapThis Week

USDOLLAR Daily

USD Shorts Remained Favored on FOMC Sell Off- Key Support 11,731

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

USD Shorts Remained Favored on FOMC Sell Off- Key Support 11,731

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.

For updates on this scalp and more setups throughout the week subscribe to SB Trade Desk

Relevant Data Releases

USD Shorts Remained Favored on FOMC Sell Off- Key Support 11,731

Other Setups in Play:

---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

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

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