{"id":27195,"date":"2018-06-27T10:42:12","date_gmt":"2018-06-27T05:12:12","guid":{"rendered":"http:\/\/www.icmarkets.com\/blog\/?p=27195"},"modified":"2025-11-14T21:55:12","modified_gmt":"2025-11-14T10:55:12","slug":"wednesday-27th-june-usd-trades-on-strong-footing-will-we-see-95-00-on-the-us-dollar-index-before-the-weeks-end","status":"publish","type":"post","link":"https:\/\/www.icmarkets.com\/blog\/wednesday-27th-june-usd-trades-on-strong-footing-will-we-see-95-00-on-the-us-dollar-index-before-the-weeks-end\/","title":{"rendered":"Wednesday 27th June: USD trades on strong footing\u2026 Will we see 95.00 on the US dollar index before the week\u2019s end?"},"content":{"rendered":"

\n\tEUR\/USD:<\/strong><\/h2>\n

Entirely engulfing Monday\u2019s gains, the shared currency took to the downside on Tuesday from the green zone sited on the H4 timeframe at 1.1734\/1.17 (comprised of June\u2019s opening level at 1.1705, a 61.8% H4 Fib resistance value at 1.1721 and a H4 resistance area at 1.1710-1.1734). What sealed the deal for us regarding this zone, though, was the fact that it houses the lower edge of the weekly resistance area within at 1.1717-1.1862. Well done to any of our readers who managed to take advantage of this trade, as price is nearing its first take-profit zone: H4 support at 1.1627.<\/p>\n

Areas of consideration:<\/p>\n

Although 1.1627 is the initial target, the team has noted to remain cognizant of the bigger picture as we could be in for much lower levels! Not only do we have weekly price responding to the lower edge of its resistance area, which shows room to press as far south as the weekly trend line support (taken from the low 1.0340), we also see there is scope for further selling on the daily timeframe down to daily support coming in at 1.1574.<\/p>\n

For folks that remain short, reducing risk to breakeven and taking partial profits at H4 support 1.1627 is a reasonable plan. The next port of call beyond 1.1627 falls in at the 1.16 handle, followed then by daily support at 1.1574. By this point, it may be an idea to have the majority of your position closed.<\/p>\n

Today\u2019s data points: EUR M3 Money supply y\/y; US durable goods orders m\/m; FOMC member Quarles speaks.<\/p>\n

\"2018-06-27<\/a><\/p>\n

\n\tGBP\/USD:<\/strong><\/h2>\n

Try as it might, cable couldn\u2019t reclaim the 1.33 handle on Tuesday. Topping at highs of 1.3292, the pair sold off amid European trade, exacerbated by a robust USD across the board and comments from BoE\u2019s Haskel who expressed a degree of caution on rates.  <\/p>\n

Technically speaking, yesterday\u2019s move lower brought the H4 candles towards a buy zone located at 1.32\/1.3213, which happens to align with a H4 AB=CD correction (red arrows). To be clear, this is not a high-probability reversal zone. As stated in previous reports, we expected an intraday <\/em>bounce from here, which is what we got. Why lower prices could still be on the cards from here comes from observing the higher timeframes. Note that on the weekly timeframe we have room to press lower until reaching support drawn from 1.3047. Further to this, daily sellers printed a nice-looking bearish engulfing candle during yesterday\u2019s action, and shows space to attack the June 21 lows at 1.3102, followed closely by daily support at 1.3063 (sited just north of the mentioned weekly support level).<\/p>\n

Areas of consideration:<\/p>\n

Ultimately, we\u2019re looking for a favorable USD wind to force the GBP below 1.32. A H4 close beneath this number that\u2019s followed up with a retest in the shape of a full or near-full-bodied H4 bearish candle would, in our humble view, be sufficient enough to consider shorting this market. With stops tucked above the rejection candle\u2019s wick, traders\u2019 crosshairs will likely be fixed on the H4 Quasimodo support at 1.3146 as the initial take-profit zone. Areas beyond here fall in at June 21 lows mentioned above at 1.3102 (effectively denoting the 1.31 handle) and daily support, also highlighted above, at 1.3063.<\/p>\n

Today\u2019s data points: BoE Gov. Carney speaks; BoE financial stability report; US durable goods orders m\/m; FOMC member Quarles speaks.<\/p>\n

\"2018-06-27<\/a><\/p>\n

\n\tAUD\/USD:<\/strong><\/h2>\n

Despite an earnest attempt to hold ground above the 0.74 handle, the commodity currency failed to sustain upside beyond highs of 0.7423. A healthy bid surrounding the USD, as well as ongoing trade concerns, pulled H4 price back beneath 0.74 on Tuesday. H4 demand at 0.7371-0.7393 (marked with a black arrow), however, is seen nearby and appears to be supporting the market for now. A violation of this area opens downside to familiar H4 support in the form of 0.7350.<\/p>\n

Weekly demand at 0.7371-0.7442 remains in the fray, but seems to be hanging on by a thread. Last week\u2019s push below this area likely tripped stops and cleared the path south to nearby weekly support at 0.7282. A similar story is seen on the daily timeframe. Daily demand at 0.7371-0.7429 (plotted within the lower limit of the aforementioned weekly demand area) has yet to print anything noteworthy to the upside, despite additional confluence seen at this zone in the form of a daily channel support taken from the low 0.7758.<\/p>\n

Areas of consideration:<\/p>\n

According to our reading, the Australian dollar expresses a subtle bearish vibe at the moment.<\/p>\n

In light of the above, however, we feel neither a long nor short is attractive this morning:<\/p>\n