Talking Points:
– USDOLLAR Rebounds From 10,470 Pivot (Former Resistance) Following NFPs
– USD/JPY Holds Below May High (103.01) Ahead of BoJ Meeting
– NZD/USD Breaks Out of Descending Channel Ahead of RBNZ Meeting

The Dow Jones-FXCM U.S. Dollar Index (Ticker: USDollar) pared the overnight decline to 10,466 as the Non-Farm Payrolls (NFP) report continued to cast an improved outlook for the U.S. labor market, but the greenback remains at risk of facing a further decline ahead of the Fed’s June 18 meeting as the reserve currency continues to carve a series of lower-highs.

Index

Last

High

Low

Daily Change (%)

Daily Range (% of ATR)

DJ-FXCM Dollar Index

10494.95

10503.55

10466.42

0.13

120.16%

Despite the pickup in wage growth, the positive development are likely to have a limited impact in spurring a meaningful shift in the policy outlook amid the ongoing slack in the real economy, and it seems as though we will get more of the same this month as Fed Chair Janet Yellen remains reluctant to normalize monetary policy.

With that said, we will continue to look for opportunities to ‘selling bounces’ in the greenback, and the USDOLLAR could be well on its way to fresh 2014 lows as there appears to be a bearish momentum taking shape in the Relative Strength Index (RSI).

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Read More:
Price & Time: Important Turn Window Coming Up For Gold
Breakout or Break Down? NZD/USD Eyes Critical Resistance Pre-NFPs

USDOLLAR Daily

Chart – Created Using FXCM Marketscope 2.0
At Risk for Lower-Low as Bearish RSI Momentum Takes Shape
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

Change in Non-Farm Payrolls (MAY)