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.

0

Notifications

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

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Bearish
Oil - US Crude
Mixed
Wall Street
Bearish
Gold
Bearish
GBP/USD
Bearish
USD/JPY
Mixed
More View more
USDOLLAR Breakout Gathers Pace as Fed’s Powell Endorses Sept. Liftoff

USDOLLAR Breakout Gathers Pace as Fed’s Powell Endorses Sept. Liftoff

David Song, Strategist

Talking Points:

- USDOLLAR Rebound Gathers Pace as Fed’s Powell Endorses Rate-Hikes in September & December.

- EUR/USD Preserves Triangle/Wedge Formation Amid Greek Impasse; Bearish RSI Trigger in Focus.

- GBP/USD Risks Larger Pullback After Carving Higher-High in June; 2014 Retracement on Radar.

For more updates, sign up for David's e-mail distribution list.

USDOLLAR(Ticker: USDollar):

Index

Last

High

Low

Daily Change (%)

Daily Range (% of ATR)

DJ-FXCM Dollar Index

11868.24

11883.94

11803.22

0.52

110.79%

USDOLLAR Breakout Gathers Pace as Fed’s Powell Endorses Sept. LiftoffUSDOLLAR Daily Chart

Chart - Created Using FXCM Marketscope 2.0

  • The Dow Jones-FXCM U.S. Dollar may face a larger rebound as price & RSI break out of the bearish formation; need to clear the string of lower-highs from earlier this month to favor a resumption of the long-term bullish trend.
  • Despite the dismal U.S. Durable Goods report, we’re seeing Fed Governor Jerome Powell highlights a hawkish outlook for monetary policy, with the FOMC voting-member endorsing a rate hike in both September as well as December.
  • The push back above former support around 11,826 (61.8% expansion) to 11,843 (38.2% retracement) may generate a larger rebound going into the end of June, with a close above the region opening up the next topside target around 11,898 (50% retracement) to 11,901 (78.6% expansion).

Join DailyFX on Demand for Real-Time SSI Updates!

USDOLLAR Breakout Gathers Pace as Fed’s Powell Endorses Sept. Liftoff

Click Here for the DailyFX Calendar

EUR/USD

EUR/USD Daily Chart

Chart - Created Using FXCM Marketscope 2.0

  • Failed attempt to test the May high (1.1465) may keep EUR/USD within a triangle/wedge formation over the near to medium-term; waiting for a close below 1.1185 (23.6% expansion) to 1.1210 (61.8% retracement) along with a break of the bullish RSI momentum to highlight lower-high in euro-dollar.
  • A resolution for Greece may spur a relief bounce in EUR/USD, but the long-term outlook for the pair remains bearish as amid the deviation in the policy outlook, with the ECB pledging to fully-implement its QE program until September 2016.
  • DailyFX Speculative Sentiment Index (SSI) shows retail crowd remains net-short EUR/USD since March 6, but the ratio continues to come off from extremes as it currently sits at -1.63.

GBP/USD

USDOLLAR Breakout Gathers Pace as Fed’s Powell Endorses Sept. Liftoff
  • GBP/USD remains at risk for a larger pullback after carving a higher-high (1.5929) in June, while the RSI fails to push into overbought territory; will look for a higher-low in the days ahead as long as the oscillator preserves the bullish momentum carried over from April.
  • As the Bank of England (BoE) looks for a stronger recovery in the second-half of 2015, a meaningful pickup in growth & inflation may spur a larger retracement of the 2014 decline in GBP/USD amid the tightening race with the Federal Reserve to normalize monetary policy.
  • Close below 1.5740-50 (23.6% retracement) to bring up next downside targets around 1.5630 (38.2% retracement) to 1.5650 (38.2% expansion).

Join DailyFX on Demand for Real-Time SSI Updates Across the Majors!

Read More:

COT-Yen Positioning is Extreme

GBPUSD Pullback to Offer Favorable Long Entries- 1.57 Key Support

--- 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