USD Tries To Break Out, Time To Buy GBP?
Dailyfx | Jul 14, 2014 01:09PM ET
- US Dollar Threatens Bearish Setup; Yellen Testimony in Focus
- GBP/USD Posts Larger Correction Ahead of U.K. CPI; Buy Opportunity?
- Bullish AUD/USD Formation at Risk as RBA Toughens Verbal Intervention
|
Index |
Last |
High |
Low |
Daily Change (%) |
Daily Range (% of ATR) |
|
DJ-FXCM Dollar Index |
10416.31 |
10421.32 |
10403.68 |
0.06 |
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63.73% |
US DOLLAR
- Dow Jones-FXCM U.S. Dollar Index at risk for larger correction as price & RSI fail to maintain bearish trend.
- With the broader downward trending channel still in play, downside targets remain favorable, while former support around 10,440 (78.6% retracement) may offer near-term resistance.
- The Humphrey-Hawkins Testimony with Fed Chair Janet Yellen presents the largest event risk for the US DOLLAR; will we get more of the same?
GBP/USD
- Will continue to look for closing prices above the 1.7100 handle as 1.7060-70 (23.6% retracement) offers intraday support.
- U.K. Consumer Price Index (CPI) may limit the correction as headline reading for inflation is expected to increase an annualized 1.6% in June.
- Topside targets remain favorable as price & RSI preserve bullish formations from earlier this year.
AUD/USD
- May fail to preserve ascending channel formation should the Reserve Bank of Australia (RBA) Minutes highlight recent comments from Governor Glenn Stevens.
- Near-term support still stands at 0.9330-40; need break and close below to see a move back towards the 0.9200 handle.
- China 2Q Gross Domestic Product (GDP) will also be a key event risk to watch as the growth rate is expected to expand 1.8% versus 1.4% during the first three-months of 2014.
US DOLLAR
Chart - Created Using FXCM Marketscope 2.0
- Interim Resistance: 10,508 (61.8% retracement) to 10,524 (38.2% retracement)
- Interim Support: 10,354 (Oct. low) to 10,375 (50.0& retracement)
--- Written by David Song, Currency Analyst.
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