Talking Points:
– USDOLLAR Continues to Threaten 10,470 Pivot Ahead of FOMC Minutes
– GBP/USD to Target Fresh Highs on U.K. Retail Sales, Hawkish BoE Minutes
– Bearish AUD/USD Outlook Favored on Dovish RBA Minutes- Need Close Below 0.9200
The Dow Jones-FXCM U.S. Dollar Index (Ticker: USDollar) appears to be making another attempt to break out of the bearish formation from earlier this year, but the greenback may mark another failed attempt to close above the 10,470 pivot as we are likely to get more of the same from the Federal Open Market Committee (FOMC) Minutes.
Index
Last
High
Low
Daily Change (%)
Daily Range (% of ATR)
DJ-FXCM Dollar Index
10469.17
10477.28
10455.9
0.10
70.72%
There’s a limited risk of seeing a material shift in the Fed’s policy outlook as the central bank remains in no rush to normalize monetary policy, and the committee looks poised to retain its current approach going into the second-half of 2014 as Chair Janet Yellen remains reluctant to move away from the zero-interest rate policy (ZIRP).
Despite expectations of seeing another $10B taper at the June 18 meeting, the bar remains high for the Fed to normalize monetary policy ahead of schedule, and the USDOLLAR may resume the downward trend from earlier this year as the central bank continues to endorse its highly accommodative policy stance.
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Read More:
Price & Time: About to Throw in the Towel?
GBP/JPY Top Valid Below 171.25, Eyes 169.05; GBP/USD Struggles on CPI
USDOLLAR Daily
Chart – Created Using FXCM Marketscope 2.0
Outlook to Remain Bearish on Another Failed Attempt to Close Above 10,470
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
Fed’s Charles Plosser Speaks on U.S. Economy
16:30
Fed’s William Dudley Speaks on U.S. Economy
17:00
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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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Source: Daily fx