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.

Free Trading Guides
EUR/USD
Mixed
GBP/USD
Bullish
USD/JPY
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Mixed
Bitcoin
Bearish
More View more
Real Time News
  • RT @vtg2: The Federal Reserve's latest effort to calm the financial system — pumping $100B a day into trillion-dollar funding markets — is…
  • Overnight Swaps are pricing a 3.8% probability for a rate cut at next month's FOMC meeting, down from 57.9% on October 3rd $DXY $TNX https://t.co/41MnIb34Lu
  • It seems as though the potential auto tariffs on the #EU are a no-go at this time... I'd still like to see a firmer confirmation but this will have to do for now $DAX $CARZ https://t.co/7hnHtwhKOB
  • 🇺🇸 USD Baker Hughes U.S. Rig Count (NOV 15), Actual: 806 Expected: N/A Previous: 817 https://www.dailyfx.com/economic-calendar#2019-11-15
  • Heads Up:🇺🇸 USD Baker Hughes U.S. Rig Count (NOV 15) due at 18:00 GMT (15min), Actual: N/A Expected: N/A Previous: 817 https://www.dailyfx.com/economic-calendar#2019-11-15
  • The US Citi Economic Surprise Index drops below zero as economic data comes in under expectations this week $DXY $SPX https://t.co/zA9zAELlN2
  • House Majority Leader Hoyer says there will be no holiday leave until a government funding bill is approved $DXY
  • Australian #Dollar Price Outlook: #Aussie Plunges to Technical Support - $AUDUSD Levels - https://t.co/rLdZHVkDsq https://t.co/Mdv3GUM2MQ
  • #Gold prices continue to trade within the descending channel from the September 4 and November 1 highs. Get your $XAUUSD market update from @CVecchioFX here:https://t.co/2AOAlwveW7 $GLD https://t.co/oLqswZB5Sd
  • Commodities Update: As of 17:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 1.92% Silver: -0.18% Gold: -0.28% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/RnOiMfKWGa
U.S. Dollar Index Rebound Overbought, Consolidation Ahead

U.S. Dollar Index Rebound Overbought, Consolidation Ahead

2011-05-31 15:52:00
David Song, Currency Strategist
Share:

DJ FXCM Dollar Index

Index

Last

High

Low

Daily Change (%)

Daily Range (% of ATR)

DJ-FXCM Dollar Index

9568.98

9578.64

9508.86

-0.01

89.35%

U.S._Dollar_Index_Rebound_Overbought_Consolidation_Ahead_body_ScreenShot053.png, U.S. Dollar Index Rebound Overbought, Consolidation Ahead

The Dow Jones-FXCM U.S. dollar index bounced back from a low of 9508.86 on Tuesday, but the greenback may continue to consolidate in the days ahead as it breaks out of the upward trending channel from earlier this month. The USD remains 0.01% lower on the day after moving 89% of its average true range, and the rebound in the reserve currency appears to be tapering off as the relative strength index falls back from overbought territory. In turn, the dollar may make struggle to hold its ground over the next 24-hours of trading, and the index may make another run at 9500.00 to test for psychological support. However, the slew of dismal coming out of the world’s largest economy appears to be weighing on market sentiment, and a shift in risk-taking behavior should prop up the reserve currency as it benefits from safe-haven flows.

U.S._Dollar_Index_Rebound_Overbought_Consolidation_Ahead_body_ScreenShot054.png, U.S. Dollar Index Rebound Overbought, Consolidation Ahead

Although three of the four components weakened against the USD, the rally in the Euro has certainly dragged on the index, and the rebound in the single-currency may gather pace as European policy makers look to step up their efforts in addressing the sovereign debt crisis. As the EU plans to draw up a second bailout package for Greece by the end of June, the European Central Bank may continue to talk up speculation for higher interest rates, and the EUR/USD may retrace the decline from earlier this month as the Governing Council toughens its stance against inflation. However, as the euro-dollar struggles to push back above the 78.6% Fibonacci retracement from the 2009 high from the 2010 low around 1.4440-50, the pair may face range-bound price action ahead of the next ECB rate decision on June 9 as investors weigh the outlook for future policy.

Join us to discuss the outlook for the major currencies on the DailyFXForums

To discuss this report contact David Song, Currency Analyst: dsong@dailyfx.com

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

DISCLOSURES

News & Analysis at your fingertips.