- USDOLLAR Remains at Risk of Lower-High Amid Bearish RSI Momentum
- Euro Retains Range-Bounce Prices; ECB Pledges to Act if Needed
Daily Change (%)
DJ-FXCM Dollar Index
Chicago Fed National Actvity Index (JAN)
The Dow Jones-FXCM U.S. Dollar Index (Ticker: USDollar) continues to hold below former support (10,615) amid the weakening outlook for the world's largest economy, and the greenback remains at risk of carving a lower high ahead of the Federal Open Market Committee (FOMC) Meeting on
The recent rebound in the USD appears to be a mere correction as the Relative Strength Index (RSI) preserves the bearish momentum from the previous month, and the dollar outlook may turn increasingly bearish over the coming days should we see a lower-high take shape during the last full-week of February.
With that said, we continue to favor 'selling bounces' in the USDOLLAR as it carves a new series of lower highs paired with lower lows, and a further shift in interest rate expectations may spur a larger decline in the reserve currency as market participants see the Fed taking a more delayed approach in normalizing monetary policy.
Three of the four components advanced against the greenback, led by a 0.63 percent rally in the Australian dollar, while the Euro lagged behind as
Indeed, there's bets that the ECB will further embark on its easing cycle at the
Should the updated assessment highlight a greater willingness to implement more non-standard measures, a more dovish shift in the policy outlook may generate fresh lows in the EURUSD, and we will keep a close eye on the RSI as it appears to be threatening the bullish momentum carried over from the previous month.