Talking Points:
- USDOLLAR Previous Day’s Range Despite Positive Data
- EUR/USD to Hold Range Ahead of ECB Interest Rate Decision
- AUD/USD Range at Risk as Australia 1Q GDP Picks Up
The Dow Jones-FXCM U.S. Dollar Index (Ticker: USDollar) pared the decline to 10,511 amid the slew of positive data prints coming out of the world’s largest economy, but the greenback remains at risk of carving a near-term top as it holds within the previous day’s range.
A lower-high may take shape in June as the Relative Strength Index (RSI) appears to be carving a new bearish trend, but we will continue to watch the opening monthly range to generate a near-term bias as the greenback retains the range-bound price action carried over from the previous week.
With that said, the European Central Bank (ECB) meeting along with the highly anticipated Non-Farm Payrolls (+215K) report may heavily alter the technical outlook for the USDOLLAR as market participants weigh the prospects for monetary policy, and we will largely retain a prudent approach ahead of the major event risks amid the broad range of market expectations surrounding the ECB interest rate decision.
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EUR/USD Wedge Lingers Pre-ECB, USD/CHF Flirts with Double Bottom
USDOLLAR Daily
Chart – Created Using FXCM Marketscope 2.0
Remains at Risk of Carving Near-Term Top in June
Interim Resistance: 10,602 (38.2 retracement) to 10,615 (78.6 expansion)
Interim Support: 10,354 to 10,375 (50.0 retracement)
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— Written by David Song, Currency Analyst
To contact David, e-mail dsong@dailyfx.com. Follow me on Twitter at @DavidJSong.
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EUR/USD Range in Focus Ahead of ECB- AUD/USD Eyes Former Support
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