USD Shorts Remained Favored on FOMC Sell Off- Key Support 11,731

Talking Points

• 
  Dollar breakdown testing confluence support post FOMC
  


• 
  Updated targets & invalidation levels on USDOLLAR
  


• 
  Event Riskon TapThis Week
  

USDOLLAR Daily

Chart Created Using FXCM Marketscope 2.0

Technical Outlook

• 
  USDOLLAR breaks pitchfork support– tests key support at 11731/37
  


• 
  Interim resistance at the ML off the highs / 11839 backed by 11880/87 (bearish invalidation)
  


• 
  Break lower targets support objectives at 11681 & the May lows
  


• 
  Daily RSI reversal at 60 &- break sub-50 (bearish)
  


• 
  Momentum approaching 40 support- break to validate short-bias
  


• 
  Event Risk Ahead:Housing Data & Final Read on 1Q GDP next week
  

USDOLLAR 30min

Notes: An update to the setup published on June 3rd– The USDOLLAR posted an outside reversal candle yesterday on the back of the FOMC Interest Rate announcement with the decline breaking below the weekly opening range / key support at 11839/43. The index has responded to confluence support at the 11731 with a rebound today in New York testing former median-line parallel support (now interim resistance) into the close of the session.

Bottom line: the broader short-bias remains in play below the weekly ORL at 11839 with only a breach above 11880/87 shifting the focus back to the topside. We’ll be looking to sell rallies / short-triggers with a break sub-11731 targeting objectives at 11681 & 11634.

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Relevant Data Releases

Other Setups in Play:

• 
  Scalp Webinar: Bearish USD Technical Outlook to Face Upbeat FOMC
  


• 
  USDCAD Breakdown at Initial Support- Short Scalps Favored Sub 1.24
  


• 
  EURNZD Threatens Key Resistance Ahead of RBNZ- Longs at Risk Sub 1.59
  


• 
  Scalp Webinar: NFP Fails to Spur USD Breakout- June Range Remains Key
  


• 
  USDOLLAR Flirts with Breakdown- Short Scalps Favored Sub 11960 Ahead of NFPs
  

—Written by Michael Boutros, Currency Strategist with DailyFX

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USD Shorts Remained Favored on FOMC Sell Off- Key Support 11,731