Talking Points:
– USD/JPY Correction in Focus; Need RSI to Fall Back From Overbought Territory
– USD/CAD Marks Another Failed Attempt at 1.1000 Ahead of 2Q GDP; RSI Divergence Takes Shape
– USDOLLAR Continues to Carve Lower-Highs on Intraday Time Frames

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USD/JPY

Need the Relative Strength Index (RSI) to fall back from overbought territory to favor a larger correction as it holds above 70 for the first time since December.
Will watch former resistance zone around 102.80 (38.2% retracement) to 102.90 (23.6% expansion) for near-term support.
The DailyFX Speculative Sentiment Index (SSI) suggests retail crowd is increasing net-short exposure on USD/JPY as the ratio now stands at -1.56.

USD/CAD

Bearish RSI divergence continues to take shape even as the USD/CAD rallies to a fresh monthly high of 1.0996.
Canada’s 2Q Gross Domestic Product (GDP) report may serve as a near-term catalyst as the growth rate is expected to increase 2.7% from 1.2% in the first three-months of 2014.
May see a larger correction before we get a more meaningful run at 1.1000 (38.2% retracement) to 1.1020 (23.6% retracement).

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Read More:
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USDOLLAR

Index

Last

High

Low

Daily Change (%)

Daily Range (% of ATR)

DJ-FXCM Dollar Index

10644.38

10660.61

10633.55

-0.05

93.03%

Chart – Created Using FXCM Marketscope 2.0

USDOLLAR(Ticker: USDollar):
Despite the slew of positive data, the Dow Jones-FXCM U.S. Dollar Index continues to mark lower-highs on intraday timeframes (1-hour & 30-minute).
Still need to see bearish RSI break to look for a gap-fill & favor larger downside correction.
May see former resistance around 10,555 (50.0% retracement) to 10,561 (100% expansion) act as new support.

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Release

GMT

Expected

Actual

Durable Goods Orders (JUL)