Hi there my avid readers! On this blog is an update of the USDX chart which I presented last June 15. Back then, the US dollar index has weakened after reaching a new high of 88.708. At present, the index is trading just below 86.00. From its chart, it looks like that is is being supported by the 38.2% Fibonacci retracement level of the most recent impulse wave. If this level gives way, the 50% and the 61.8% Fibs, including the uptrend line are still present to possibly halt it from sliding further. A presence of a bullish divergence, where the price goes higher and the stochastics go lower, suggest a likely up-move soon. Conditions are also overbought which means that traders could soon buy up the dollar.
On the fundamental front, the US, May durable goods orders and weekly unemployment claims are due later at 12:30 pm GMT. The core durable goods are projected to have increased by 1.1%. The headline account, however, is seen to have fallen by 1.2%. On a separate update, the country’s weekly unemployment claims for June 19 is expected to reach 461k which is slightly better that the last week’s 472k count. Downbeat figures in any of these accounts could spark some risk taking, benefiting the safer currencies like the USD. Stay tune for these reports today!