Talking Points:
– USDOLLAR Preserves Bearish Structure Ahead of FOMC Minutes
– USD/CAD Range in Focus Ahead of Canada Employment Report
– NZD/JPY Close Above 89.50 to Raise Scope for Higher-High
Index
Last
High
Low
Daily Change (%)
Daily Range (% of ATR)
DJ-FXCM Dollar Index
10412.42
10423.56
10401.55
0.02
75.99%
USDOLLAR(Ticker: USDollar):
Downside remains favorable for Dow Jones-FXCM U.S. Dollar Index as it continues to come off trendline resistance.
The dip below 10,406 (1.618% Fibonacci expansion from the August decline) opens the door for a move back towards 10,375 as it appears to be carving a lower-high in July.
Federal Open Market Committee (FOMC) Minutes in focus ahead of the Humphrey-Hawkins Testimony scheduled for next week.
May get more of the same from the FOMC as Chair Janet Yellen continues to highlight subdued wages.
USD/CAD:
Remains capped by 1.0690-1.0700 (23.6% Fib retracement), while 1.0610-20 (78.6% Fib expansion) holds up as near-term support.
A look at the broader channel favors a more meaningful rebound as it straddles trendline support.
Canada Employment report is expected to show another 20.0K rise in job growth; strong pickup may prompt a more material shift in the Bank of Canada (BoC) policy as Governor Stephen Poloz scales back willingness to lower the benchmark interest rate further.
NZD/JPY:
Making another move at 89.50 pivot, but need a closing price above the region to favor a further advance.
Would also like to see a bullish break in the Relative Strength Index (RSI) for confirmation/conviction.
Will watch the April high (89.91), but the next key topside objective comes in around 90.00 (50.0% Fib expansion)
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Read More:
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USDOLLAR Daily
Chart – Created Using FXCM Marketscope 2.0
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
MBA Mortgage Applications (JUL 4)
11:00
—
1.9%
Federal Open Market Committee Meeting Minutes
18:00
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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