Talking Points:
– GBP/USD Retains Descending Channel Ahead of BoE; March Low (1.6458) on Horizon?
– USD/CAD to Test 1.1000 on Dovish BoC; Lower-High in Place?
– USDOLLAR Remains Overbought; Monthly Opening Range in Focus.

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GBP/USD

Remains at risk of a further decline as the descending channel remains in play, while the Relative Strength Index (RSI) dips back into oversold territory; next key objective is the March low (1.6458).
Need to see a larger dissent within the Bank of England (BoE) to see a material shift in the near-term outlook for GBP/USD.
The DailyFX Speculative Sentiment Index (SSI) shows retail crowd is increasing their net-long exposure on GBP/USD as the ratio climbs to +2.10.

USD/CAD

Appears to have carved a higher-low in August following the failed attempts to close below 1.0820 (61.8% retracement) to 1.0830(61.8% retracement).
May see a more meaningful run at 1.1000 handle should the Bank of Canada (BoC) retain a relatively dovish tone and call for a prolonged period of interest rate stability.
Need a bullish break in the RSI to favor a higher-high & resumption of the long-term bullish trend.

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Read More:
Price & Time: Key Week Ahead For the Financial Markets
COT: Euro and Yen Positioning Near Record Levels

USDOLLAR

Index

Last

High

Low

Daily Change (%)

Daily Range (% of ATR)

DJ-FXCM Dollar Index

10702.33

10707.06

10651.73

0.45

196.11%

Chart – Created Using FXCM Marketscope 2.0

USDOLLAR(Ticker: USDollar):
Dow Jones-FXCM U.S. Dollar Index climbs to a fresh monthly high of 10,706 as ISM Manufacturing climbs to 59.0- highest reading since March 2011.
Despite the overbought RSI reading, next topside target comes in around 10,710 (23.6% retracement) to 10,716 (38.2% retracement).
Will continue to wait for a bearish RSI break for a more meaningful move back towards former resistance around 10,555 (50.0% retracement) to 10,561 (100% expansion).

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Release

GMT

Expected

Actual

Markit Purchasing Manager Index Manufacturing (AUG F)