6/25 price action is so far dominated by poor US data. We saw the biggest downward revision from the 2nd estimate to the final GDP reading, ending up at an annualized rate of -2.9% in Q1. Durable goods orders for May also missed forecast, with the headline number at -1.0% and the core reading at -0.1%.
The USD took a hit after the poor data. We already saw EUR/USD pop up from a triangle. We are also seeing the USD/JPY pair trying to break its triangle support. It is also testing the 200-day SMA. The bearish scenario is building up and a couple of additional clues can help it test the 100.76 low on the year. The US Dollar Index has been already sliding in June, and today’s reaction dragged it to a new low on the month. It is at the crossroad since the current decline is only a correction against the rally in May. However, before May, the trend was bearish, and June’s bearish USD market could be the start of a bearish continuation. We should monitor the 80.0 level on the USDX for more clues.
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