USD Struggles As Trading Week Gets Underway
Shain Vernier • 1 min read
The trading week has opened with a fizzle for the USD. Amid a charged news cycle dominated by the Trump/Putin meeting, the Greenback is slipping against the Swiss franc, Euro, and Canadian dollar.
Earlier, the U.S. Retail Sales numbers came in, largely as expected. Here is a quick look at the data:
Event Actual Projected
Retail Sales (MoM, June) 0.5% 0.5%
Retail Sales except Autos 0.4% 0.4%
Business Inventories (May) 0.4% 0.4%
All in all, Retail Sales hit projections. However, each release was down significantly from May’s numbers. At press time, it appears traders are not too thrilled with the reports as the U.S. indices are trading in the red.
The action in September USD Index futures has been decisively bearish. Lagging performance has taken price to a test of downside support on the daily time frame.
Here are the key levels to watch for the remainder of the session:
- Resistance(1): Daily SMA, 94.532
- Support(1): Bollinger MP, 94.144
Overview: The USD Index is trading in a non-committal technical area on the daily chart. With price firmly between the Daily SMA and Bollinger MP, we may be in for a period of extended rotation. This is likely to continue until FED Chair Jerome Powell issues his commentary later in the week.
We are just getting the forex trading week started here at FX Leaders. Be sure to stay tuned throughout the next five days for analysis, news, and signals fresh from the markets.