Talking Points:
– USDOLLAR to Resume Bearish Trend; Lower-Low on Tap?
– EUR/USD Breakout Eyes Former Support (1.3670-80) Ahead of ECB July Meeting
– USD/JPY Threatens Monthly Low (101.59) Ahead of Japan CPI Report

Index

Last

High

Low

Daily Change (%)

Daily Range (% of ATR)

DJ-FXCM Dollar Index

10436.21

10456

10426.24

-0.13

87.96%

USDOLLAR(Ticker: USDollar):
Dow Jones-FXCM U.S. Dollar Index continues to carve string of lower-highs in June following the dismal 1Q GDP report.
Faces an increased risk for a lower-low as descending channel & bearish RSI momentum remain in play.
Ahead of the May (10,370) & October (10,354) lows, 10,406 (1.618%% Fibonacci expansion) remains in view.

EUR/USD:
Watching former support (1.3670-80) following bullish breakout.
Looking for close above 1.3620-30 (23.6% retracement) to favor topside objectives.
May need more details surrounding the European Central Bank’s (ECB) easing cycle at the July 3 meeting to look beyond the June range.

USD/JPY
Despite the decline, USD/JPY still holds above 200-Day SMA (101.60) & June low (101.59).
Need bearish RSI break to favor a further decline; next downside hurdle comes in around 101.40-50 (78.6% retracement).
Headline reading for Japanese inflation to expand 3.7% versus 3.4% in April; may encourage Bank of Japan (BoJ) to further scale back its dovish tone for monetary policy.

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ST Triangle in EUR/USD Ready to Break as USDOLLAR Flags Out of Wedge

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

Gross Domestic Product (Annualized) (1Q T)