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
Bearish
GBP/USD
Mixed
USD/JPY
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
Bullish
Oil - US Crude
Bearish
Bitcoin
Bearish
More View more
Real Time News
  • RT @FactSet: $SPX is reporting revenue growth of 2.9% for Q4, led by the Health Care (11%), Utilities (9%), and Communication Services (9%)…
  • The AUD has been hit by the risk-appetite pullback occasioned by the spread of Wuhan-strain coronavirus. This week may see domestic focus return, if headlines allow, with key inflation data due. Get your $AUDUSD market update from @DavidCottleFX here: https://t.co/UIpwno0pSq https://t.co/kib4d1mA0q
  • RT @anilvohra69: USD inverted (red) is correlated to Excess Reserves (blue) and Reserve Balances (green). 1/2 https://t.co/bbO1pPWY4F
  • RT @FactSet: $SPX is reporting a decline in earnings of -1.9% for Q4, led by the Energy (-42%), Consumer Discretionary (-14%), and Material…
  • Becoming a forex trader means living and breathing the excitement, risk and reward of trading in the biggest and most liquid market in the world. Do you have what it takes? Read here to discover the qualities and processes it takes to build consistency: https://t.co/EfWEACQ6Cz https://t.co/6iMyDFqnqe
  • Knowing how to accurately value a #stock enables traders to identify and take advantage of opportunities in the stock market. Find out the difference between a stock's market and intrinsic value, and the importance of the two here: https://t.co/QszmdZFxlk https://t.co/2mjzvYvgSn
  • Previewing the Texas Rangers new home! https://t.co/WITZGSQPlc
  • Thanks for having me on @MartinSEssex https://t.co/fg8uOe16wr
  • The MACD is often used with its default setting when entering trades. However, this versatile indicator can be customized to assist traders in exiting trades too. Learn how to better incorporate the MACD into your trading strategy here: https://t.co/HnY7gzsI2q https://t.co/5F1DSvAXyy
  • What are some factors affecting $GBP as we head into 2020, quarter one? Download your Sterling fundamental forecast with @nickcawley1 here to find out: https://t.co/YfDSYSATK9 https://t.co/ANFLIuDY4J
FX Setups for the Week of June 25, 2018: USD/CHF, GBP/USD

FX Setups for the Week of June 25, 2018: USD/CHF, GBP/USD

2018-06-25 18:34:00
James Stanley, Currency Strategist
Share:

Talking Points:

- If you’re looking to improve your trading approach, our Traits of Successful Traders research could help. This is based on research derived from actual results from real traders, and this is available to any trader completely free-of-charge.

- If you’re looking for a primer on the FX market, we can help. To get a ground-up explanation behind the Forex market, please click here to access our New to FX Trading Guide.

This week marks the final week of Q2 and the first half of 2018, and as we move into the second half of the year a number of key themes remain interesting across global markets. One of the more notable takeaways from Q2 has been a re-emergence of US Dollar strength to go along with bearish moves in both the Euro and British Pound.

To accent this backdrop, this week’s economic calendar has a number of key drivers set to be released. We have high-impact USD data every day of the week, Tuesday-Friday; and European data takes the stage as we wind the week down as a couple of European inflation prints are set to be released on Thursday and Friday. Below, we look at two price action setups for this week, and we’ll review these setups on our webinars set to take place on Tuesday and Thursday at 1PM ET, each of which are linked below and available for sign-up.

Tuesday: Tuesday, 1PM ET

Thursday: Thursday 1PM ET

Bearish USD/CHF on a Hold Below Parity

We’d looked at the short-side of USD/CHF last week, and the pair has come within a few pips of our initial target at .9850 before a bit of support began to show. But the fact that prices continue to print with both lower-lows and lower-highs continues to highlight the bearish potential in the pair; and this comes after the strong topside run that showed through April and May. With prices now sitting at short-term support, I need the pair to pullback a bit before I can look to add to the position. There’s an area of prior support/resistance that remains appealing for such a scenario, and that zone runs from around .9890 up to .9915; and a pull back to resistance here opens the door for stops above parity and initial targets set to .9825. The first target can be coupled with a break-even stop along with a secondary target down to the psychological level of .9750.

USD/CHF Four-Hour Chart: Bearish Continuation Potential

usd/chf usdchf four-hour chart

Chart prepared by James Stanley

Bearish GBP/USD on Hold Below 1.3350

Last week was fairly busy for the British Pound, and the currency came into the week continuing the sell-off that had driven price action for the better part of the prior two months. But around the Bank of England rate decision on Thursday, GBP/USD began to bounce from a key Fibonacci level; and as we open this week, the potential for a deeper move of strength remains as we discussed in our earlier technical piece on the pair entitled, GBP/USD: British Pound Price Bounces From Fibonacci Support post-BoE.

As we discussed in that piece, the longer-term down-trend remains attractive here. But the pair had become so oversold as we walked into that BoE rate decision, and the fact that we have a potential bullish driver given that hawkish outlay at the bank could bring a deeper retracement before that longer-term bearish trend is ready for resumption.

But – there’s also a short-term bearish setup showing, as prices have held the resistance area around 1.3304 that we looked at shortly after that rate decision. This can keep the door open for short-side continuation, but stops on the position will be kept rather tight in the event that a deeper retracement does show. Stops can be set at 1.3350 to get above last week’s high along with some additional room, and that can open the door for initial targets at the 1.3200 handle. Stops can go to break-even at that initial target, and secondary targets can be cast down to the same 1.3117 Fibonacci level that helped to cauterize support last week.

Want to see how retail traders are currently trading GBP/USD? Click here for GBP/USD Sentiment.

GBP/USD Four-Hour Chart: Bearish Continuation Potential

gbpusd gbp/usd four-hour chart

Chart prepared by James Stanley

To read more:

Are you looking for longer-term analysis on the U.S. Dollar? Our DailyFX Forecasts for Q1 have a section for each major currency, and we also offer a plethora of resources on USD-pairs such as EUR/USD, GBP/USD, USD/JPY, AUD/USD. Traders can also stay up with near-term positioning via our IG Client Sentiment Indicator.

Forex Trading Resources

DailyFX offers a plethora of tools, indicators and resources to help traders. For those looking for trading ideas, our IG Client Sentiment shows the positioning of retail traders with actual live trades and positions. Our trading guides bring our DailyFX Quarterly Forecasts and our Top Trading Opportunities; and our real-time news feed has intra-day interactions from the DailyFX team. And if you’re looking for real-time analysis, our DailyFX Webinars offer numerous sessions each week in which you can see how and why we’re looking at what we’re looking at.

If you’re looking for educational information, our New to FX guide is there to help new(er) traders while our Traits of Successful Traders research is built to help sharpen the skill set by focusing on risk and trade management.

--- Written by James Stanley, Strategist for DailyFX.com

Contact and follow James on Twitter: @JStanleyFX

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

DISCLOSURES

News & Analysis at your fingertips.