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.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View more
Real Time News
  • 🇫🇷 Business Confidence (SEP) Actual: 106 Expected: 109 Previous: 110
  • Heads Up:🇪🇸 GDP Growth Rate QoQ Final (Q2) due at 07:00 GMT (15min) Expected: 2.8% Previous: -0.4%
  • Heads Up:🇪🇸 GDP Growth Rate YoY Final (Q2) due at 07:00 GMT (15min) Expected: 19.8% Previous: -4.2%
  • It’s important for traders to be familiar with FX spreads as they are the primary cost of trading currencies. Understand a pair's spread here:
  • Heads Up:🇫🇷 Business Confidence (SEP) due at 06:45 GMT (15min) Expected: 109 Previous: 110
  • Key levels in forex tend to draw attention to traders in the market. These are psychological prices which tie into the human psyche and way of thinking. Learn about psychological levels here:
  • 🇳🇱 GDP Growth Rate QoQ Final (Q2) Actual: 3.8% Expected: 3.1% Previous: -0.8%
  • 🇳🇱 GDP Growth Rate YoY Final (Q2) Actual: 10.4% Expected: 9.7% Previous: -2.4%
  • What is your forex trading style? Take the quiz and find out:
Is the USDOLLAR Correction Over? Key Setups to Watch

Is the USDOLLAR Correction Over? Key Setups to Watch

David Song, Strategist

- Head-and-Shoulders in USDOLLAR Pans Out; Searching for Support

- Bullish Divergence in 30-Minute Relative Strength Index

- Japanese Yen Hits Fresh Monthly Low as Bank of Japan Stands Ready





Daily Change (%)

Daily Range (% of ATR)

DJ-FXCM Dollar Index






USDOLLAR 30-Minute

Forex_Is_the_USDOLLAR_Correction_Over_Key_Setups_to_Watch_body_ScreenShot087.png, Is the USDOLLAR Correction Over? Key Setups to Watch

Chart - Created Using FXCM Marketscope 2.0

  • Resistance remains at 10,803 (38.2 retracement) to 10,806 (78.6 expansion)
  • Head-and-Shoulders formation appears to be completed
  • 23.6 percent Fibonacci expansion (10,694) offering near-term support
  • Bullish 30-minute RSI divergence taking shape; coming off of support (13)





NFIB Small Business Optimism (AUG)




The Dow Jones-FXCM U.S. Dollar Index (Ticker: USDollar) extended the decline from earlier this week, with the greenback tagging a fresh monthly low of 10,691, but the reserve currency appears to be carving out a higher low ahead of the Federal Open Market Committee (FOMC) interest rate decision amid the bullish divergence in the 30-minute Relative Strength Index.

The series of higher highs paired with higher lows in the RSI should limit the bearish momentum in the dollar, and we may see a more meaningful rebound in the coming days as the oscillator continues to come off of support (13). In turn, the technical outlook suggests that the near-term correction is coming to an end, and we may revert back to the ‘buy the dip’ strategy should the dollar carve a higher base around the 23.6 percent Fibonacci expansion around 10,694.


Forex_Is_the_USDOLLAR_Correction_Over_Key_Setups_to_Watch_body_ScreenShot089.png, Is the USDOLLAR Correction Over? Key Setups to Watch

The USDOLLAR may coil up for a move higher as it appears to be carving a higher low ahead of the Fed’s September 17-18 meeting, and we will retain a bullish outlook for the greenback as long as the daily RSI holds above the 41 figure.

However, as the economic docket remains fairly light over the next 24-hours of trading, risk sentiment may continue to dictate price action across the foreign exchange market, and we will need to keep a close eye on news wires amid the headline-driven market. Nevertheless, speculation surrounding the FOMC rate decision should limit the downside risk for the greenback as the central bank looks to taper its asset-purchase program, and the bullish trend in the USDOLLAR should continue to take shape as a growing number of Fed officials turn upbeat towards the economy.

Forex_Is_the_USDOLLAR_Correction_Over_Key_Setups_to_Watch_body_ScreenShot091.png, Is the USDOLLAR Correction Over? Key Setups to Watch


Forex_Is_the_USDOLLAR_Correction_Over_Key_Setups_to_Watch_body_ScreenShot090.png, Is the USDOLLAR Correction Over? Key Setups to Watch
  • Interim Resistance: 100.60-70 (61.8 expansion)
  • Former resistance 99.20 (23.6 expansion) – 99.40 (50.0 expansion) to act as support
  • Focus on bullish divergence in Relative Strength Index

Three of the four components rallied against the dollar, led by a 0.64 percent advance in the Australian dollar, while the Japanese Yen bucked the trend, with the USDJPY advancing 0.64 percent on the day.

In light of the fresh commentary coming out of the Bank of Japan (BoJ) Minutes, it seems as though Governor Haruhiko Kuroda is ready and willing to combat any spillover effects of the first sales-tax hike in 15-years, and the central bank remains poised to further embark on its easing cycle over the coming months in order to achieve the 2 percent target for inflation.

In turn, we should see the bullish breakout continue to take shape in the days ahead, and will look for a more meaningful run at the 61.8 percent expansion around 100.60-70 amid the deviation in the policy outlook.

--- Written by David Song, Currency Analyst

To contact David, e-mail Follow me on Twitter at @DavidJSong.

To be added to David's e-mail distribution list, please follow this link.

Trade Alongsidethe DailyFX Team on Analyst on Demand

Looking to use the DailyFX Trade Signals LIVE? Check out Mirror Trader.

New to FX? Watch this Video

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

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