The US Dollar gained a bit of value, thereby pushing the USD index higher up to 80,46 yesterday amid a positive new-home-sales report. At this point, this is the weekly high.
As of today, the index is trading within a certain consolidation range. The range is located between 2 key levels - 80.21 and 80.46, Market Leader reports.
It appears that the market is waiting for major stats from the USA. In particular, we are going to see the US durable goods orders report. This report won't include transportation orders.
According to the forecast, the orders are expected to boost by 0,1% in May. At the same time, economists say that the durable orders are likely to go up to 0,4% this time as opposed to the previous value of 0,3%.
Meanwhile, the USA is also going to release the GDP report at the same time. The readings have been going down from 3,2% since January 2014. May's report is expected to go negative (-1%). Analysts say that the US GDP has entered the zone of temporary decline and therefore expect the value to continue the decline down to -1,7% next time.
USD Index
Masterforex-V Academy studied the H1 chart of the USD index to find out hat the price has been developing a mid-term trend starting from 80,97. The development of the 3rd bearish momentum started from 80,83 and was suspended a bit. The wave in question consists of 3 waves (marked blue). Yesterday's rally formed the 80.21-80.46 price range, where the US Dollar has been trading ever since.
The near-term prospects of the currency pair will be determined by the direction in which the price breaks out of the range as well as by the following levels of support and resistance:
Support: 80.46 + 80.51 + 80.52 + 80.72 + 80.83 + 80.88, 80.94 + 80.97.
Resistance: 80.22(21) + 80.19.
