News & Analysis at your fingertips.

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.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Bearish
Oil - US Crude
Mixed
Wall Street
Bearish
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
Gold
Mixed
GBP/USD
Bearish
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
USD/JPY
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
More View more
Real Time News
  • The non-farm payroll (NFP) figure is a key economic indicator for the United States economy. It is also referred to as the monthly market mover. Find out why it has been given this nickname here: https://t.co/yOUVEEqhc5 https://t.co/qtAmyhFU9A
  • Get your snapshot update of the of relative currency strength and exchange status from around the globe here: https://t.co/H19vRDCpUJ https://t.co/S74APOiQ3y
  • Two of the main Euro-pairs, $EURUSD and $EURGBP, are being driven by very different drivers. Get your market update from @nickcawley1 here: https://t.co/Vd32Y6HKEr https://t.co/Lgb5z5V1Xa
  • Recessions can devastate the economy and disrupt the fortunes of individuals, businesses, and investors. But economic decline in the business cycle is inevitable, and your trading can be defined by how you respond to crisis. learn how to prepare here: https://t.co/e4CnobJCss https://t.co/9uPXNvDBS5
  • We ended this past week with another cliffhanger. The $SPX teeters on the edge of a breakdown from the post-pandemic recovery. While we have NFPs and other key data ahead, the markets are likely to remain fixated on yields. My outlook for next week: https://www.dailyfx.com/forex/video/daily_news_report/2021/02/27/SP-500-Dollar-Reversal-Hinge-Not-On-NFPs-but-Markets-Risk-Imagination.html?ref-author=Kicklighter&QPID=917719&CHID=9 https://t.co/mlNDDyTgex
  • Make smart trading decisions with your free guide to trade the news. Download your free guide here.https://t.co/pb5E2KgRzW #DailyFXGuides https://t.co/70ZOJ0ZMwF
  • Looking for a new way to trade reversals? One of the most used reversal candle patterns is known as the Harami. Like most candlestick formation patterns, the Harami tells a story about sentiment in the market. Get better with trading reversals here: https://t.co/rfwUWJfbz9 https://t.co/SyroornFf5
  • MACD who? The Moving Average Convergence Divergence (MACD) is a technical indicator which simply measures the relationship of exponential moving averages (EMA). Find out how you can incorporate MACD into your trading strategy here: https://t.co/ZNs4QhQGQ6 https://t.co/KrMcyZZqO7
  • The Reserve Bank of Australia (RBA) rate decision may spark a bullish reaction in $AUDUSD as the central bank is expected to retain the current course for monetary policy. Get your market update from @DavidJSong here: https://t.co/WbcR9ER0qT https://t.co/TynsqCtPQ6
  • Gold has broken below a critical support confluence we’ve been tracking for months now and the risk remains for further losses while below this threshold in the weeks ahead. Get your $XAUUSD market update from @MBForex here:https://t.co/xgN2obaIWR https://t.co/H71ufPNkPg
EUR/USD Bull Flag Unfolds in Early 2018

EUR/USD Bull Flag Unfolds in Early 2018

David Song, Strategist

The broader shift in EUR/USD behavior may continue to unfold in 2018 as the exchange rate breaks out of the range carried over from 2015.

The bullish sentiment surrounding the single-currency may continue to build over the coming months as the European Central Bank (ECB) starts to wind down its quantitative easing (QE) program, and President Mario Draghi and Co. may prepare European households and businesses for a less accommodative stance as ‘the economic expansion in the euro area continues to be solid and broad-based.’

Recent comments from Governing Council officials suggest the central bank will continue to change its tune over the comings months especially as board member Ardo Hansson favors a gradual change in the forward-guidance for monetary policy, while Jens Weidmann notes that the ECB is on ‘track toward our definition of price stability.’ Moreover, Yves Merschhas noted that the executive board must be ‘very careful not to act too timidly and too late and to fall behind the curve,’ while Benoit Coeurewarned that ‘markets have to understand that QE will not last forever.’

In contrast, the Federal Open Market Committee (FOMC) may find it increasingly difficult to justify three rate-hikes in 2018 as ‘some participants observed that there was a possibility that inflation might stay below the objective for longer than they currently expected.’ Signs of limited price growth may prompt the FOMC under Jerome Powell to adopt a more cautious tone, with the central bank at risk of concluding its hiking-cycle ahead of schedule amid ‘concern that persistently weak inflation may have led to a decline in longer-term inflation expectations.’ Interested in having a broader discussion on current market themes? Sign up and join DailyFX Currency Analyst David Song LIVE for an opportunity to discuss potential trade setups!

EUR/USD Weekly Chart

EUR/USD Daily Chart

Longer-term outlook for EUR/USD remains constructive as a bull-flag formation unfolds in early 2018, while the Relative Strength Index (RSI) preserves the bullish trend carried over from November and flirts with overbought territory for the first time since the summer months. However, the near-term outlook remains capped by the 1.2130 (50% retracement) hurdle, with the failed attempt to test the September-high (1.2092) raising the risk for a pullback. In turn, the former-resistance zone around 1.1960 (38.2% retracement) stands on the radar, with the next downside region of interest coming in around 1.1810 (61.8% retracement).New to the currency market? Want a better understanding of the different approaches for trading? Start by downloading and reviewing the FREE DailyFX Beginners guide!

--- Written by David Song, Currency Analyst

To contact David, e-mail dsong@dailyfx.com. Follow me on Twitter at @DavidJSong.

To be added to David's e-mail distribution list, please follow this link.

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

DISCLOSURES