RJO FuturesCast

Daily Futures Market News, Commentary, & Insight

While the president has a small chance of restraining the Fed, comments challenging the Fed have had a knee-jerk reaction of pulling the dollar back from the highs yesterday.  However, it is possible that the presidents concern of the international trade threat associated with higher USD is an argument that the Fed will consider in their policy decisions.  In other words, not because of what the president said, but because of the real actual negative potential impact on US export competitiveness the Fed will have to pay attention to the rising dollar.  Therefore, an intermediate top appears to be in place in the dollar and some normal back and fill action is likely considering the thin US economic report slate today.  Initial corrective targeting in the September dollar index is seen down at 94.60 but ranges are likely to be narrow unless there is a surprise over the weekend in the trade war.

The USD made a new contract high on the rally and momentum studies are rising from mid-range, which could accelerate a move higher if resistance levels are penetrated.  Next upside target is 95.80.  Resistance comes in at 95.30 with support at 94.60.

US Dollar Sep ’18 Daily Chart

US Dollar Sep '18 Daily Chart

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Tony Cholly

Senior Market Strategist
Tony majored in Economics at Eastern Illinois University. He performed his thesis on the market price of corn in the market and the factors that affect it. Tony was drawn to futures trading because of the opportunity to have financial gains in an economic environment. He prides himself on working with customers one-on-one and developing a trading strategy based on the client's needs and wants.
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