Post-FOMC Minutes USD Decline Nearing Completion? Déjà Vu!
- USDOLLAR retests former TL, breaks intraweek downtrend.
- USDCAD may be flagging on ST timeframes again.
As the market reaction to the June FOMC meeting went, so too goes the reaction to the June FOMC minutes, it seems. By that we mean the relative briefness of the post-FOMC event US Dollar selloff, whereby the greenback has exhibited signs of bottoming and breaking its recent intraweek downtrend, similar to when we made our US Dollar bottom call on June 19.
In a sense then (and as the title hints at), we're experiencing a bit of déjà vu, but that would be a good thing for the USDOLLAR Index, which was up +1.8% from June 19 at the time of writing today. If the future holds a similar outcome, the broad gauge of US Dollar strength may be well-primed to continue its run higher on a technical basis, with price holding a significant retest of former trendline resistance turned support.
Let's not forget Greece here, either. Recent developments have stoked false hope of a deal to break the impasse between Greece and her creditors, but reality is quickly setting in that the parameters of any deal as framed by the IMF may be simply unachievable given the staunch negotiating stance of Germany.
--- Written by Christopher Vecchio, Currency Strategist
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