Talking Points:
– USDOLLAR Outlook Still Bearish as Monthly Opening Range Remains Intact
– AUD/JPY Rebound Stalls at Former Support (0.9430-50)
– XAU/USD Capped by 50-Day SMA (1303); Risks Key Break Ahead of June

Despite the mixed data prints coming out of the world’s largest economy, the Dow Jones-FXCM U.S. Dollar Index (Ticker: USDollar) may make a more meaningful attempt to close above the 10,470 pivot ahead of June as it fails to maintain the descending channel from earlier this year.

Index

Last

High

Low

Daily Change (%)

Daily Range (% of ATR)

DJ-FXCM Dollar Index

10490.85

10492.71

10465

0.24

90.08%

The greenback may face a larger correction in the coming days amid the bullish break in price and the Relative Strength Index (RSI), but the lack of momentum to clear the opening monthly range may continue to foster a bearish outlook for the reserve currency as the Federal Reserve remains in no rush to normalize monetary policy.

With that said, we will preserve our bearish outlook for the USDOLLAR as it appears to be carving a lower high in May, and the greenback remains at risk of facing additional headwinds over the near-term as Fed Chair Janet Yellen continues to highlight the ongoing slack in the real economy. In turn, we will need to see a more material shift in the policy outlook to favor a constructive view for the dollar.

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Read More:
Price & Time: Approaching Key Levels, But EUR/USD Remains Vulnerable
GBPNZD Scalps Target May Opening Range Break- Bullish Above 1.96

USDOLLAR Daily

Chart – Created Using FXCM Marketscope 2.0
Need Break of Monthly Opening Range to Favor Topside Targets
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

Chicago Fed National Activity Index (APR)