USDOLLAR short-term analysis – 30 May 2023

  • USDOLLAR
    (${instrument.percentChange}%)

Left Daily Chart

  • FXCM's USDOLLAR is down on the day as it unwinds an overbought condition (black rectangle).
  • However, the daily candlestick chart remains in its bullish channel, between the upper blue and red bands.
  • If the daily chart remains in this channel and its RSI above 50, there will be an underlying bullish momentum driving the greenback.
  • This will make dips in the uptrend interesting.

Right Hourly Chart

  • The hourly candlestick chart has pulled back to a confluence of support.
  • This level of support coincides with the S2 pivot, a 50% retracement and price support (green shaded horizontal).
  • The hourly stochastic has dropped below 20. If it maintains this position the support will battle to hold.
  • However, if the trend-following EMAs and the stochastic cross up, the dollar bulls may be satisfied that the daily overbought condition has unwound sufficiently.

Fundamentals

  • Last Friday saw inflation data come in above expectations.
  • This Friday will see the release of non-farm payrolls. If this also prints hotter than expected, the USDOLLAR will likely be supported.

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Russell Shor

Senior Market Specialist

Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.

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