We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Mixed
USD/JPY
Mixed
Gold
Bullish
Oil - US Crude
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Bitcoin
Mixed
More View more
Real Time News
  • Why has every technical analyst heard of RSI? The relative strength index is a momentum oscillator that measures speed and change of price movements. Read here to find out how you can better incorporate RSI into your trading strategy or technical analysis: https://t.co/1UzaSzjtwh https://t.co/7FZ53xADOZ
  • A number of macro items took attention away from the British #Pound, but the backdrop appears set for potential in $EURGBP, $GBPJPY and perhaps even $GBPCHF. Get your $GBP technical analysis from @JStanleyFX here: https://t.co/hgdFTSOdmT https://t.co/9ZrFZAExdp
  • RT @GlobalTimesBiz: After more than two weeks of #China’s efforts to resume business activities, only 30 percent of migrant workers has ret…
  • It seems the markets are riding high, but risk is always lurking around the corner. Consider your escape plan before you find yourself in collapsing market. What are the top havens for different conditions in 2020? Find out from @JohnKicklighter here:https://t.co/1oeXWEsJkb https://t.co/c5YVgs5YKD
  • While Sino-US trade jitters are temporarily abating, China-Swedish trade tensions are rising as a part of a political contagion of growing economic hostilities between nations across the world. Get your market update from @ZabelinDimitri here:https://t.co/F1fVoyzoz5 https://t.co/z49NzgZrXd
  • RT @malkudsi: Natural Gas Eyes Pushing Higher as Support Holds - Nat Gas Technical Analysis More details in the link below: https://t.co/HG…
  • As prices dance around on charts, traders are often looking for reasons to explain price movements; however, the underlying source of price movement boils down to the relationship between supply and demand. Learn more about the forces of S&D on forex here: https://t.co/8LfkLXbj2W https://t.co/swcuwAMGAk
  • How can traders avoid #FOMO in trading? Start by implementing a well-heeled plan taking only four hours per week. Get your insight from @JStanleyFX here: https://t.co/vwUShQPc27 #tradingstyle https://t.co/4adyTWvQ22
  • What are the Market cycles? How are #currencies impacted in these cycles? How can these cycles impact #forextrading patterns? Find out here: https://t.co/ckr2fUOWqW https://t.co/gLJGj1FAOC
  • Central bank independence has several advantages and disadvantages. Find out what they are in-depth with @MartinSEssex here: https://t.co/wVFXbbTxf1 https://t.co/J0MMkVmCUu
Pending Long USD/CAD, Short AUD/USD and EUR/GBP

Pending Long USD/CAD, Short AUD/USD and EUR/GBP

2011-10-20 11:01:00
Christopher Vecchio, CFA, Sr. Currency Strategist
Share:

The Euro-zone summit this weekend could boost risk-appetite in the near-term, though I remain highly bearish given the significant fundamental structural issues that remain and will likely remain in place for months. Until these issues are addressed - mainly being the excess liquidity in the system that when withdrawn will likely lead to a market crash (credit is overextended and unwarranted: the natural business cycle has been disrupted) - I remain long-term bearish.

Accordingly, these trade setups are predicated on the notion that markets are winding up into a pattern similar to late 2008, on a fundamental and technical basis. Fundamentally, there is chatter about a bank recapitalization for the top 50 banks which are deemed "systemically" crucial. These European banks will be recapitalized with the European Financial Stability Fund, a vehicle that draws comparisons to the Troubled Asset Relief Program employed in the United States in late 2008. Even though banks were recapitalized, it should be noted that equity markets did not bottom until March 2009, nearly 5-months after TARP was instated. My outlook for the EFSF and markets is of the same outcome.

With that said, the trades on the table which have not been initialized but remain within their timeframes and within their bearish formations.

Long USD/CAD

- Entry: Long at 1.0369 [sub-wave a of wave 4]

- Stop: Stop to 1.0234

- Target 1(Reward/Risk Ratio): 1.0657 [termination of wave 3, weekly high] (288/135, 2.13)

- Target 2: 1.0854 [projected termination of wave 5] (485/135, 3.59)

- Timeframe: 2-weeks

Short AUD/USD

- Entry: Short at 0.9845 [38.2 Fibo]

- Stop: 1.0046 [23.6 Fibo] (201-pips)

- Target 1(Reward/Risk Ratio): 0.9683 [50.0 Fibo] (162/201, 0.81)

- Target 2: 0.9521 [61.8 Fibo] (324/201, 1.61)

- Target 3: 0.9386 [October low] (459/201, 2.28)

- Timeframe: 3-weeks

Short EUR/GBP

- Entry: Short at 0.8690 [below 20-DMA]

- Stop: 0.8794 [Double/Triple Top] (104-pips)

- Target 1 (Reward/Risk Ratio): 0.8600 (90/104, 0.87)

- Target 2: 0.8523 [76.4 Fibo] (167/104, 1.61)

- Target 3: 0.8465 [Range Bottom] (225/104, 2.16)

- Timeframe: 2-weeks

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.