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
Gold
Bullish
Oil - US Crude
Mixed
Bitcoin
Bearish
More View more
Real Time News
  • The $JPY market faces a clear disconnect between domestic economic data and monetary policy. What if that were to change? Get your market update from @DavidCottleFX here:https://t.co/4Gr8tLaHvj https://t.co/0eXMv5CTnd
  • #Forex Forecast via @DailyFX: US Dollar Technical Outlook on $DXY, $AUDUSD, $USDCAD, $USDJPY & $EURUSD Full Analysis ⬇️ https://www.dailyfx.com/forex/technical/article/fx_technical_weekly/2019/11/17/usd-price-us-dollar-chart-forecast-dxy-audusd-usdcad-usdjpy-eurusd.html
  • Further escalation in Hong Kong will likely bode poorly for risk appetite https://t.co/0NjUd3ahBu
  • How should you trade around event risks and what steps can you take to improve your trading psychology? Find out from @JoelKruger, a trading consultant and mentor. Only on Global Markets Decoded. Missed the episode? Read up here:https://t.co/JWIGJk4vKa https://t.co/WB39x4GP99
  • Poll - Does your personality match your #tradingstyle? Vote and find out from @WVenketas here: https://t.co/vREsUIWSJd https://t.co/Ft0ExAmMpq
  • #Dow Jones hits record high, however, central bank liquidity prompts volatility implosion. #FTSE 100 among underperformers with focus remaining on politics. Get your #equities market update from @JMcQueenFX here: https://t.co/EOFleGSeBp https://t.co/ecAyfSUeAM
  • RT @C_Barraud: 🇪🇺 #ECB’s Muller Says More Assets Could Join Stimulus List in Slump - Bloomberg https://t.co/roGEgu0VTQ
  • With increasing volatility in weather patterns, how might storms, hurricanes and floods rattle the supply chain for petroleum-based products and impact crude oil prices? Find out from @JStanleyFX here:https://t.co/O4dgBl47fq https://t.co/OQYqZAYt9S
  • Currency Strategist,@PaulRobinsonFX is a Swing trader. What is your #tradingstyle? Take the quiz and let us know: https://t.co/LPBOcS0Vtd https://t.co/WzRYeqRhUL
  • Despite what your #tradingstyle is, you should be keeping a trading journal. How can you start keeping a trading journal? Find out: https://t.co/0akgWbyJEw https://t.co/4ehMlN4zv1
Dollar Gets Reprieve- Volatility to Pick up this Week

Dollar Gets Reprieve- Volatility to Pick up this Week

2011-05-30 17:29:00
Michael Boutros, Technical Strategist
Share:
Dollar_Gets_Reprieve-_Volatility_to_Pick_up_this_Week_body_Picture_2.png, Dollar Gets Reprieve- Volatility to Pick up this WeekDollar_Gets_Reprieve-_Volatility_to_Pick_up_this_Week_body_Picture_3.png, Dollar Gets Reprieve- Volatility to Pick up this Week

The greenback saw a reprieve of the heavy selling pressure seen last week with the Dow Jones FXCM dollar index rebounding off interim support at 9550. The dollar’s trajectory in the days to come will largely depend on the week’s economic docket, with traders eagerly anticipating Friday’s non-farm payroll report. With inflation concerns also taking root, the overnight inflation read from the Eurozone could fuel additional shorts against the single currency, propping up the greenback. The index continued to trade in a tight range on Monday amid thin holiday trade. A break of interim resistance at 9575 would see further gains for the dollar, with short-term targets eyed at the 50SMA, currently at 9590.

Dollar_Gets_Reprieve-_Volatility_to_Pick_up_this_Week_body_Picture_4.png, Dollar Gets Reprieve- Volatility to Pick up this Week

The US Dollar Index broke below support at the convergence of the 20-Day moving average and the 23.6% Fibonacci retracement taken from the November decline at 0.9590. The index fell by more than 0.70% on Friday before finding solace just above the 0.9550 support level. Subsequent floors are now seen at 9520 backed by 9460 and 9370. Topside resistance is eyed at 9650 with subsequent ceilings eyed at 9700 and 9750.

Dollar_Gets_Reprieve-_Volatility_to_Pick_up_this_Week_body_Picture_5.png, Dollar Gets Reprieve- Volatility to Pick up this Week

A look at the component currencies attests to the dollar’s advance, with the greenback seeing the largest gains against euro and the sterling. Traders continue to await news with regards to the fate of Greece as concerns about a possible debt restructuring continue to mount. With Credit Suisse overnight swaps factoring in a zero percent chance of an interest rate hike from the ECB next month, the euro may see some weakness as rate expectations. Overnight, investors get an update on inflation in the Eurozone with the May CPI estimate print at 9:00GMT. Consensus estimates call for the figure to remain unchanged at 2.8% y/y with the unemployment rate also holding at 9.9%. Other data that could impact the index include the Australian current account balance and private sector credit. The US economic docket will be closely watched after last week’s string of weaker than expected prints. May Chicago PMI is expected to decline to 63.0 from a previous print of 67.6, while consumer credit is seen climbing to 66.0 from 65.4 in April.

Upcoming Events

Region

Date

GMT

Importance

Release

Expected

Prior

AU

5/31

1:30

MEDIUM

Current Account Balance (Australian Dollar) (1Q)

-10000M

-7299M

AU

5/31

1:30

MEDIUM

Private Sector Credit (MoM) (APR)

0.5%

0.6%

AU

5/31

1:30

MEDIUM

Private Sector Credit (YoY) (APR)

3.8%

3.6%

AU

5/31

1:30

LOW

Building Approvals (MoM) (APR)

-1.8%

9.1%

AU

5/31

1:30

LOW

Building Approvals (YoY) (APR)

-12.7%

-18.1%

EC

5/31

9:00

HIGH

Euro-Zone CPI Estimate (YoY) (MAY)

2.8%

2.8%

EC

5/31

9:00

MEDIUM

Euro-Zone Unemployment Rate (APR)

9.9%

9.9%

US

5/31

13:45

MEDIUM

USD Chicago Purchasing Manager (MAY)

63.0

67.6

US

5/31

14:00

HIGH

USD Consumer Confidence (MAY)

66.0

65.4

US

5/31

14:30

LOW

USD Dallas Fed Manufacturing Activity (MAY)

-

10.5

Written by Michael Boutros, Currency Analyst for DailyFX.com

To contact the author of this report or subscribe to their daily analysis, please send inquiries to:mboutros@dailyfx.com

You can also follow Michael on Twitter @MBForex

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

DISCLOSURES

News & Analysis at your fingertips.