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
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
Bullish
Wall Street
Mixed
Gold
Bullish
GBP/USD
Mixed
USD/JPY
Bearish
More View more
USDOLLAR Eyes Lower Low- AUD Fills Gap But Needs Close Above 0.9100

USDOLLAR Eyes Lower Low- AUD Fills Gap But Needs Close Above 0.9100

2014-03-13 14:50:00
David Song, Strategist
Share:

Talking Points:

- USDOLLAR at Risk for Lower Low Ahead of FOMC Meeting

- AUDUSD Looking to Fill Weekly Opening Gap; Watching for Close Above 0.9100

Index

Last

High

Low

Daily Change (%)

Daily Range (% of ATR)

DJ-FXCM Dollar Index

10513.81

10562.78

10508.34

-0.46

152.75%

USDOLLAR Daily

Forex_USDOLLAR_Eyes_Lower_Low-_AUD_Closes_Gap_But_Needs_Close_Above_0.9100_body_Picture_3.png, USDOLLAR Eyes Lower Low- AUD Fills Gap But Needs Close Above 0.9100

Chart - Created Using FXCM Marketscope 2.0

  • Failure to Push Above 10,590 (50.0 retracement) Risks Lower High
  • Interim Resistance: 10,602 (38.2 retracement) to 10,615 (78.6 expansion)
  • Interim Support: 10,470 Pivot

Release

GMT

Expected

Actual

Advance Retail Sales (FEB)

12:30

0.2%

0.3%

Advance Retail Sales ex Autos (FEB)

12:30

0.1%

0.3%

Advance Retail Sales ex Auto and Gas (FEB)

12:30

0.2%

0.3%

Advance Retail Sales Control Group (FEB)

12:30

0.2%

0.3%

Initial Jobless Claims (MAR 8)

12:30

330K

315K

Continuing Claims (MAR 1)

12:30

2903K

2855K

Import Price Index (MoM) (FEB)

12:30

0.5%

0.9%

Import Price Index (YoY) (FEB)

12:30

-1.9%

-1.1%

Business Inventories (JAN)

14:00

0.4%

0.4%

The Dow Jones-FXCM U.S. Dollar Index (Ticker: USDollar) extended the decline from earlier this week despite the slew of positive developments coming out of the U.S. economy, and the greenback faces a growing risk for a lower low as the Relative Strength Index (RSI) threatens the bullish momentum carried over from the previous month.

As mentioned in DailyFX on Demand, a downside break in the RSI may push the USDOLLAR back down towards the 10,470 region, and we will maintain our approach for ‘selling bounces’ in the greenback as it carves a lower high in March.

With that said, we may have to wait the Federal Open Market Committee (FOMC) interest rate decision to see a meaningful rebound in the dollar as the central bank is widely expected to reduce its asset-purchase program by another $10B, and we will continue to watch the downside targets ahead of the policy meeting as the reserve currency search for support.

Forex_USDOLLAR_Eyes_Lower_Low-_AUD_Closes_Gap_But_Needs_Close_Above_0.9100_body_ScreenShot214.png, USDOLLAR Eyes Lower Low- AUD Fills Gap But Needs Close Above 0.9100

AUDUSD Daily

Forex_USDOLLAR_Eyes_Lower_Low-_AUD_Closes_Gap_But_Needs_Close_Above_0.9100_body_Picture_1.png, USDOLLAR Eyes Lower Low- AUD Fills Gap But Needs Close Above 0.9100
  • Waiting for Opening Gap to be Filled on Close-Basis; Needs Close Above 0.9100
  • Interim Resistance: 0.9200 (100.0% expansion) to 0.9210 (61.8% retracement)
  • Interim Support: 0.8670 (100.0% expansion) to 0.8700 (78.6% retracement)

Join DailyFX on Demandto Cover Current Australian Dollar Trade Setups

The greenback weakened across the board, led by a 1.21 percent advance in the Australian dollar, and the AUDUSD looks poised to fill the Sunday opening gap on a close-basis following the upbeat employment report coming out of the $1T economy.

Indeed, the technical outlook continues to favor further advance for the AUDUSD as price and RSI retains the bullish trend from earlier this year, but a failed close above 0.9100 may generate a pullback in the exchange rate as the Reserve Bank of Australia (RBA) looks for a weaker currency.

In turn, we will maintain a long-term bearish outlook for the Australian dollar, and the AUDUSD may continue to carve a lower high in March as Governor Glenn Stevens prefers the exchange rate close to the 0.8500 handle.

--- Written by David Song, Currency Analyst

To contact David, e-mail dsong@dailyfx.com. 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 DailyFX 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.

DISCLOSURES

News & Analysis at your fingertips.