USD Rallies on Positive US Economic Data

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USD Rallies on Positive US Economic Data

Today, we got better than expected data from both the services sector, and the manufacturing sector. ISM Non-manufacturing PMI for July came in at 58.7, the highest level this year. Meanwhile, Factory Orders in June increased 1.1% to a total of $503.2B, which is the highest level for the current series. The USD rallied. Let’s take a look at the US Dollar Index,  USD/JPY and EUR/USD.

US Dollar Index rallied to fresh highs on the year, exposing a target of 82.67, which is a high from Sept. 2013. The USD/JPY looks poised to challenge the resistance around 103 again. A break above it will open up the 103.75-104 highs from March and April. The EUR/USD dipped to new lows on the year, and still has downside risk to the 1.3295-1.33 level, especially if there is a pullback to 1.34 and that holds. A break above 1.3445 will be needed to introduce the bullish correction scenario.

To contact the reporter of this story, email Fan Yang at fan@forexminute.com
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Fan Yang has been a professional forex trader and analyst since 2007. He specializes in technical analysis and has a Chartered Market Technician designation since 2011. He was the chief technical strategist at CMSFX He was also the founder and chief currency strategist at FXTimes Over the years, Fan has not only been a trader and analyst but also an educator. As a proponent of both technical and fundamental analysis in trading, Fan advocates simplicity and discipline as key factors in making trading decisions when faced with so many "clues" and "signals". Currently Fan Yang is the chief currency analyst and webinar instructor at forexminute.com.