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
Mixed
Oil - US Crude
Bullish
Wall Street
Mixed
Gold
Bullish
GBP/USD
Mixed
USD/JPY
Bearish
More View more
Real Time News
  • Noguchi nominated for BOJ board by Japan's government - BBG
  • $GBPNZD could extend recent losses after surging away from the 100-MA and failing to breach range resistance at 1.9120 - 1.9150 A retest of the monthly low looks on the cards if sellers can drive the exchange rate back below the 21-EMA (1.8956) $GBP $NZD #technicalanalysis https://t.co/uAb9NLF0Bd
  • The British Pound may continue gaining ground against its haven-associated counterparts in the near term. However, the currency may give up gained ground against the New Zealand Dollar.Get your $GBP market update from @DanielGMoss here:https://t.co/cIp4BfbsXT https://t.co/ycIRaUsjUI
  • Commodities Update: As of 03:00, these are your best and worst performers based on the London trading schedule: Silver: 0.44% Gold: -0.05% Oil - US Crude: -0.49% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/B0yuFtrUmB
  • Precious Metals Analysis: Gold and Silver Buoyant as Real Yields Fall - https://www.dailyfx.com/forex/market_alert/2021/01/21/Precious-Metals-Analysis-Gold-and-Silver-Buoyant-as-Real-Yields-Fall.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Moss&utm_campaign=twr #Gold #Silver #XAUUSD #XAGUSD https://t.co/3rrgV0Rl67
  • ECB is rumored to be pursuing yield spread control strategy - BBG
  • Forex Update: As of 03:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.47% 🇦🇺AUD: 0.32% 🇬🇧GBP: 0.17% 🇨🇦CAD: 0.13% 🇨🇭CHF: 0.10% 🇯🇵JPY: -0.01% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/nhcRxr7b1C
  • 🇯🇵 BoJ Interest Rate Decision Actual: -0.1% Expected: -0.1% Previous: -0.1% https://www.dailyfx.com/economic-calendar#2021-01-21
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 100.00%, while traders in Wall Street are at opposite extremes with 71.30%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/EnXWWQT0l2
  • Bank of Japan: -ETF and J-REIT purchases will be near 12 trillion yen and 180 billion yen, respectively -10-year JGB yield target will stay near zero through necessary purchases of JGBs - QQE w/yield curve control will continue with aim of 2% price stability target $USDJPY
EUR/AUD Risks Larger Pullback as Bullish Momentum Fades

EUR/AUD Risks Larger Pullback as Bullish Momentum Fades

David Song, Strategist

EUR/USD may continue to track the range from earlier this year as the European Central Bank (ECB) remains in no rush to alter the monetary policy outlook, but recent price action in EUR/AUD warns of a larger pullback as the bullish momentum abates.

Despite signs of a growing dissent within the ECB, the Governing Council appears to be on course to retain the current policy at the next meeting on April 26 as ‘domestic price pressures remain muted overall and have yet to show convincing signs of a sustained upward trend.’

It seems as though the ECB will continue to wait out the clock in an effort to avert a ‘taper tantrum,’ but more of the same from President Mario Draghi and Co. is likely to keep EUR/USD within the 2018 range as market participants push out bets for an ECB rate-hike. 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 Daily Chart

EURUSD Daily Chart

The failed run at the March-high (1.2476) may continue to foster range-bound conditions in EUR/USD, with the topside largely capped by the 1.2370 (61.8% expansion) to 1.2430 (50% expansion) region, while near-term support comes in around 1.2230 (50% retracement).

EUR/AUD Daily Chart

EURAUD Daily Chart

EUR/AUD pares the decline from earlier this month after struggling to close below the 1.5880 (78.6% expansion) region, but the failed run at the 2016-high (1.6252) keeps the near-term outlook tiled to the downside as bullish momentum fades, with the Relative Strength Index (RSI) highlighting a key trigger as it snaps the upward trend from earlier this year.

Need a close below 1.5880 (78.6% expansion) to bring the downside targets on the radar, with the first area of interest coming in around 1.5720 (23.6% expansion) followed by the 1.5620 (61.8% expansion) region, which lines up with the March-low (1.5623).

Additional Trading Resources

Are you looking to improve your trading approach? Review the ‘Traits of a Successful Trader’ series on how to effectively use leverage along with other best practices that any trader can follow.

Want to know what other currency pairs the DailyFX team is watching? Download and review the Top Trading Opportunities for 2018.

--- 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