Talking Points:
– USDOLLAR Rebound at Risk as 1Q GDP Contracts; RSI in Focus
– AUD/JPY Fails to Push Above Former Support (0.9430-50); Lower High in Place?
– XAU/USD Breaks Down; Close Below Support to Favor Further Decline

Despite the limited reaction to the slew of U.S. data prints, the near-term rebound in the Dow Jones-FXCM U.S. Dollar Index (Ticker: USDollar) may continue to take shape ahead of the advance 1Q GDP report as the reserve currency climbs back above former support (10,508-509).

Index

Last

High

Low

Daily Change (%)

Daily Range (% of ATR)

DJ-FXCM Dollar Index

10514.91

10516.83

10479.65

0.16

118.89%

The dollar may continue to pare the sharp decline from the previous month as the bullish Relative Strength Index (RSI) momentum gathers pace, but a marked downward revision in the 1Q growth rate may halt the near-term advance in the greenback as it drags on interest rate expectations.

As a result, the Federal Reserve may show a greater willingness to carry its current policy into the second-half of the year, and the USDOLLAR may continue to carve lower highs & lower lows in the coming months as Chair Janet Yellen remains in no rush to normalize monetary policy.

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Read More:
Price & Time: Range Low in the Euro?
COT Positioning of Interest in AUD, JPY, and MXN

USDOLLAR Daily

Chart – Created Using FXCM Marketscope 2.0
Topside Targets in Play as Bullish RSI Momentum Remains in Focus
Interim Resistance: 10,602 (38.2 retracement) to 10,615 (78.6 expansion)
Interim Support: 10,354 to 10,375 (50.0 retracement)

Release

GMT

Expected

Actual

Durable Goods Orders (APR)