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
EUR/USD
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
Wall Street
Bullish
Gold
Mixed
GBP/USD
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
USD/JPY
Bearish
More View more
Real Time News
  • The New Zealand Dollar may extend its surge from yearly lows as it tentatively signals a cyclical upturn. NZD/USD, NZD/JPY rates poised for further gains. Get your market update from @DanielGMoss here: https://t.co/vrOuFkvWpX https://t.co/6Rr8v6nUJ7
  • The British Pound may come under fire as uncertainty about Brexit continues to curb GBP’s enthusiasm ahead of the release of preliminary, Q2 UK GDP data. Get your #currencies update from @ZabelinDimitri here: https://t.co/CDECevj4wd https://t.co/L0Z7188Kd8
  • Copper prices seem to have stalled just shy of key chart resistance as geopolitical tensions weigh on the global-growth proxy. Get your copper market update from @ddubrovskyFX here:https://t.co/qseySE5dWP https://t.co/72MrosQoy5
  • #Gold prices put in a massive breakout in the first four days of this week, with a sizable pullback showing up on Friday. But will that deter Gold bulls? Get your #metals update from @JStanleyFX here: https://t.co/R0ykWq52Lc https://t.co/bYDNaLEvPx
  • Forex trading, which is the act of exchanging fiat currencies, is thought to be centuries old – dating back to the Babylonian period. Learn about the history of Forex here:https://t.co/ePTJlbUP7c https://t.co/fA7G42tGcH
  • Get your snapshot update of the of relative currency strength and exchange status from around the globe here: https://t.co/DmhBkd4B0k https://t.co/8cM3NQIvom
  • Technical indicators are chart analysis tools that can help traders better understand and act on price movement. Learn more about the importance of technical analysis here: https://t.co/NpC1D8y4Aa https://t.co/tEpCHQDoVW
  • A punny excerpt: “Already the exchanges between Mr. Barnier and his counterpart David Frost, have – apropos to his name – sent a chilling message about bilateral trade talks”. https://t.co/OkFCvUZs2H
  • #BritishPound May Fall on #Virus-Hit GDP Data, #Brexit Stalemate ⬇️ https://www.dailyfx.com/forex/fundamental/forecast/weekly/gbp/2020/08/08/British-Pound-May-Fall-on-Virus-Hit-GDP-Data-Brexit-Stalemate.html
  • Did you know a Doji candlestick signals market indecision and the potential for a change in direction. What are the top five types of Doji candlesticks? Find out: https://t.co/td5WA4hCZC https://t.co/BuFKivwj2h
Post-ECB EUR/USD Rebound Unravels, Bullish Momentum Abates

Post-ECB EUR/USD Rebound Unravels, Bullish Momentum Abates

2019-02-06 19:12:00
David Song, Strategist
Share:

The EUR/USD advance following the European Central Bank (ECB) meeting unravels, with the exchange rate under pressure even as the Federal Reserve drops the hawkish forward-guidance for monetary.

The Federal Open Market Committee’s (FOMC) first meeting for 2019 caught increased attention as the central bank warned of ‘cross currents’ surrounding the economic outlook, and Fed officials may continue to tame bets for higher interest rates as ‘there is elevated uncertainty around several unresolved government policy issues, including Brexit, ongoing trade negotiations, and the effects from the partial government shutdown in the United States.’

Image of fed fund futures

In turn, Fed Fund Futures may continue to show the central bank on hold throughout the first-half of the year, but the 304K expansion in U.S. Non-Farm Payrolls (NFP) appears to be raising questions about the shift in Fed rhetoric as the central bank pledges to be ‘data dependent.’ As a result, Chairman Jerome Powell & Co. may find it difficult to defend a wait-and-see approach as the U.S. economy currently shows little to no signs of a recession, with EUR/USD at risk of facing range-bound prices ahead of the next FOMC rate decision on March 20 amid the failed attempt to test the January-high (1.1570).

At the same time, the bullish momentum appears to be abating as the Relative Strength Index (RSI) snaps the upward trend from late-2018, and recent price action warns of a further decline in EUR/USD as the exchange rate carves a series of lower highs & lows. Sign up and join DailyFX Currency Analyst David Song LIVE for an opportunity to discuss potential trade setups.

EUR/USD Daily Chart

Image of eurusd daily chart

The outlook for EUR/USD has once again become uneventful amid the failed attempt to test January-high (1.1570), with the exchange rate at risk for range-bound prices as the bullish momentum abates. The recent series of lower highs & lows brings the 1.1290 (61.8% expansion) region on the radar, which largely lines up with the 2019-low (1.1290), with the next region of interest coming in around 1.1220 (78.6% retracement).

For more in-depth analysis, check out the 1Q 2019 Forecast for the Euro

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 2019.

--- Written by David Song, Currency Analyst

Follow me on Twitter at @DavidJSong.

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

DISCLOSURES

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.