Talking Points:
– Bearish USDOLLAR Outlook Remains Favored Amid String of Lower-Highs
– EUR/USD Needs Close Below 1.3570-80 to Favor Further Decline
– AUD/USD Threatens Bullish Formation Ahead of RBA Minutes

Index

Last

High

Low

Daily Change (%)

Daily Range (% of ATR)

DJ-FXCM Dollar Index

10409.99

10419.82

10384.82

0.11

115.91%

USDOLLAR(Ticker: USDollar):
Dow Jones-FXCM U.S. Dollar Index remains capped by trendline resistance; favors downside bias as the USD continues to carve string over lower highs & lows this week.
Despite the greater discussion to normalize monetary policy, the Federal Open Market Committee (FOMC) Minutes failed to present anything new that would spur a material shift in the policy outlook.
Focus now turns to the Humphrey-Hawkins Testimony scheduled for next week; may see further USD weakness should Fed Chair Janet Yellen retain a dovish tone for monetary policy.
With the USDOLLAR carving a lower-high in July, the October low (10,354) will become the next key level of interest.

EUR/USD:
Giving back the weekly advance after failing to push above 1.3650-80 resistance.
Need a close below 1.3570 (61.8% Fibonacci retracement) along with a break of the bullish trend in the Relative Strength Index (RSI) to favor downside targets.
Looks poised to retain the broad range amid the ongoing uncertainty surrounding the European Central Bank’s (ECB) non-standard measures.

AUD/USD:
Threatens trendline support as Australia Employment disappoints, China trade surplus narrows.
Would still need a break below interim support around 0.9330-40 to see a move back towards the 0.9200 handle.
Reserve Bank of Australia (RBA) Minutes, which are due out next week, may trigger another decline in the AUD/USD should the central bank continue to toughen its verbal intervention.

For more updates, sign up for David’s e-mail distribution list.

Join DailyFX on Demandfor Real-Time SSI Updates Across the Majors!

Read More:
Price & Time: Where Are the Make or Break Levels in the Yen?
GBP-crosses Present ST Opportunities as BoE Balancing Act Ensues

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

Initial Jobless Claims (JUL 5)