Talking Points:
– USDOLLAR Slips to Fresh Monthly Low; Bearish Setup Remain Intact Ahead of NFP
– USD/JPY Extends Decline as Bearish RSI Break Takes Shape
– EUR/AUD in Focus Ahead of RBA & ECB Policy Meetings

Index

Last

High

Low

Daily Change (%)

Daily Range (% of ATR)

DJ-FXCM Dollar Index

10416.84

10427.98

10406.49

-0.09

66.14%

USDOLLAR(Ticker: USDollar):
Dow Jones-FXCM U.S. Dollar Index remains at risk for lower-highs & lower-lows in July as price and the Relative Strength Index (RSI) retain the bearish trends.
Still waiting & watching for the RSI to break below 40 to favor a further decline.
Even though Non-Farm Payrolls (NFP) are projected to increase 210K in June, the May (10,370) & October (10,354) lows remain the next key levels of interest as the Fed retains its current approach for monetary policy.

USD/JPY:
Slips to fresh monthly low of 101.30; close below 200-Day SMA (101.63) would be the first since October 2013.
Keeping a close eye on the RSI as it appears to be breaking down from the bullish trend from earlier this year.
Next key level of interest comes in at 101.00 (50.0% Fibonacci retracement from October advance).

EUR/AUD
Appears to have carved a series of lower-highs in June as pair retains bearish RSI momentum.
20-Day SMA (1.4506) lining up very nicely with near-term trendline resistance; favors looking for opportunities to ‘sell bounces’
Reserve Bank of Australia widely expected to retain its current policy, while European Central Bank (ECB) may sound increasingly dovish as they continue to implement non-standard measures.

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Read More:
Sell the Rips & Buy the Dips?
AUDCHF Rebounds Off Key Support- Longs Favored Above 8360

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

U. of Michigan Confidence (JUN F)

13:55

82.0

82.5

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— Written by David Song, Currency Analyst

To contact David, e-mail dsong@dailyfx.com. Follow me on Twitter at @DavidJSong.

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Source: Daily fx