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USD Breaking News: Dollar Finds Support After Strong Durable Goods Release

USD Breaking News: Dollar Finds Support After Strong Durable Goods Release

Warren Venketas, Analyst

U.S. DOLLAR TALKING POINTS

  • U.S. Durable Goods Orders (May) –ACT: 0.7%, EST: 0%; CORE – ACT: 0.7%, EST: 0.3%
  • Positives for U.S. economy and greenback.
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Durable goods orders are used as a barometer for the U.S. economy by measuring industrial activity. This economic indicator represents new order data from U.S. manufacturers for higher value goods that are said to last over three years. Increasing durable goods numbers are often thought of as positives for the U.S. economy and thus the dollar by way of investors’ confidence.

For the month of May, durable goods have exceeded estimates on both total and core metrics showing increased support in the U.S. after two consecutive declining issues.

U.S. DURABLE GOODS ORDERS (MAY):

us dollar economic calendar

Source: DailyFX economic calendar

TECHNICAL ANALYSIS

U.S. DOLLAR INDEX DAILY CHART

dxy daily chart

Chart prepared by Warren Venketas, IG

Post-announcement, the DXY was bid finding sustenance from bulls and overshadowing the recent recessionary talk in the U.S.. Price action is currently testing resistance at the 50-day EMA (purple) while the days long lower wick may point to impending upside near-term.

Resistance levels:

  • 105.00

Support levels:

  • 20-day EMA (purple)
  • 50-day EMA (blue)
  • Trendline support (black)

Contact and follow Warren on Twitter: @WVenketas

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

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