Talking Points:
– EUR/USD Slips to Fresh Monthly Low as ECB Implements EUR 60B/Month QE Program.
– AUD/USD Range Vulnerable to Slowing China Recovery; RSI Structure in Focus.
– USDOLLAR Extends Advance Ahead of FOMC Meeting; Topside Targets on Radar.
For more updates, sign up for David’s e-mail distribution list.
EUR/USD
Chart – Created Using FXCM Marketscope 2.0
EUR/USD tags a fresh monthly low of 1.1403 as European Central Bank (ECB) unveils EUR 60B/month bond-purchase program, which will run through September 2015.
Will retain the approach to sell-bounces in EUR/USD as long as the Relative Strength Index (RSI) holds in oversold territory, with the next key downside target coming in around 1.1300 (161.8% expansion) to 1.1310 (100% expansion).
Seeing increased volatility in the DailyFX Speculative Sentiment Index (SSI) as retail-crowd turns net-long EUR/USD following the ECB interest rate decision, with the ratio currently standing at +1.01.
AUD/USD
AUD/USD may preserve the range-bound price action over the remainder of the week as the pair continues to hold above the monthly opening low, while the bullish RSI momentum takes shape.
However, aussie may face additional headwinds over the next 24-hours of trade as China’s HSBC Manufacturing survey is expected to show another contraction in business outputs.
Nevertheless, need a bearish break in RSI along with a close below 0.8000-20 to favor
Join DailyFX on Demand for Real-Time SSI Updates Across the Majors!
Read More:
USDMXN Head-and-shoulders On Radar
Price & Time: Regime Change In Gold
USDOLLAR(Ticker: USDollar):
Index
Last
High
Low
Daily Change (%)
Daily Range (% of ATR)
DJ-FXCM Dollar Index
11749.67
11753.51
11669.34
0.40
144.47%
Chart – Created Using FXCM Marketscope 2.0
Dow Jones-FXCM U.S. Dollar breaks out ahead of the Federal Open Market Committee (FOMC) policy meeting on January 28; topside targets favored as RSI pushes back into overbought territory.
Interested to see the Fed’s response to the wave of global monetary support especially given the 2015 rotation within the committee.
Close above 11,721 (38.2% expansion) should provide conviction/confirmation for a move into 11,774 (50% expansion).
Join DailyFX on Demand for Real-Time SSI Updates!
Release
GMT
Expected
Actual
Initial Jobless Claims (JAN 17)
13:30
300K
Continuing Claims (JAN 10)
13:30
2400K
FHFA House Price Index (MoM) (NOV)
14:00
0.3%
Kansas City Fed Manufacturing Activity (JAN)
16:00
8
Click Here for the DailyFX Calendar
— Written by David Song, Currency Analyst
To contact David, e-mail dsong@dailyfx.com. Follow me on Twitter at @DavidJSong.
To be added to David’s e-mail distribution list, please follow this link.
Trade Alongsidethe DailyFX Team on DailyFX on Demand
Looking to use the DailyFX Trade Signals LIVE? Check out Mirror Trader.
New to FX? Watch this Video
Join us to discuss the outlook for the major currencies on the DailyFXForums
Source: Daily fx
