GDP Up Next
USD has been on the backfoot following the July FOMC yesterday. With the refraining of any mention of tapering, bulls were left empty-handed and upside bets have been unwound accordingly. The focus now shifts to today’s GDP release. Given the lacklustre meeting yesterday, it will take an attention grabbing upside surprise to turn the current move around. Unless we see a strong beat it seems that USD is likely to continue lower. Should data disappoint, this sell off could gather pace quite quickly with little on the horizon to offer bulls any reason to dream.
Where to Trade US GDP?
The Dollar index has seen plenty of bearish divergence on the recent move higher. With price now reversing and MACD and RSI both bearish, there is room for the move to gather pace on a break of 92.07, with 90.98 the next big downside target to note.