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. See our updated Privacy Policy here.

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
More View more
Breaking news

Federal Reserve Leaves Interest Rates Unchanged, Maintains Monthly Asset Purchases

Real Time News
  • RT @LeaderMcConnell: Based on a commitment from Leader Schumer to Senators Portman and Sinema that the Portman-Sinema amendment to be filed…
  • The price of oil defends the advance from the monthly low ($65.01) amid a larger-than-expected decline in US inventories. Get your #crudeoil market update from @DavidJSong here:https://t.co/Bwfi4Zybkv https://t.co/BPWtwLnBMU
  • RT @burgessev: Barring something really surprising, Senate will move forward on bipartisan infrastructure deal shortly. Capito says: "I pla…
  • Forex Update: As of 20:00, these are your best and worst performers based on the London trading schedule: 🇨🇦CAD: 0.65% 🇨🇭CHF: 0.49% 🇪🇺EUR: 0.22% 🇦🇺AUD: 0.18% 🇳🇿NZD: -0.00% 🇯🇵JPY: -0.12% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/9L05PhfdwA
  • GBP/USD pushes higher as UK COVID cases fall, Fed remains highly accommodative $GBPUSD https://t.co/bPAGpMkhjN
  • GBP/USD has been lifted by signs that coronavirus cases in the UK are dropping and by suggestions that office attendance is rising.Get your $GBPUSD market update from @MartinSEssex here:https://t.co/RZxPm1XLto https://t.co/SIEjfEffBW
  • Commodities Update: As of 20:00, these are your best and worst performers based on the London trading schedule: Silver: 1.20% Gold: 0.49% Oil - US Crude: -0.07% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/HByKIG4bmC
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 93.75%, while traders in France 40 are at opposite extremes with 69.77%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/tC95moURI1
  • $USD now at two week lows, cutting into secondary support zone 92.19-92.26 $DXY https://t.co/n14cvwLofZ https://t.co/HaPRsGzyxJ
  • Infrastructure week, for real this time https://t.co/jh4BLwj0aC
US Dollar Price Action Setups: EUR/USD, GBP/USD

US Dollar Price Action Setups: EUR/USD, GBP/USD

James Stanley, Senior Strategist

US Dollar, EUR/USD, GBP/USD Talking Points:

  • The US Dollar is holding support near a key spot on the chart.
  • This zone of confluent support turned around a stark sell-off in early-September.
  • EUR/USD has built into a fairly consistent range, and GBP/USD may be threatening a topside breakout.
  • The analysis contained in article relies on price action and chart formations. To learn more about price action or chart patterns, check out our DailyFX Education section.
Advertisement

The US Dollar continues to hold near an area of long-term support and this was the same zone that had come into play in early-September to turn around the USD sell-off that had started in March.

This area offers a few different mechanisms of support to create this confluent zone, with a trendline projection plotted from the 2011-2014 lows coming back into view again this morning. Also of interest from the monthly chart: At this point there’s a not-yet-complete evening star formation brewing, accented by September’s strength running into resistance in October, which led to the build of a hammer formation. So far through the first half of November we’ve seen more than half of the bullish move in September taken-out; and if USD does close the month with a confirmed evening star – that can keep the door open for a deeper bearish move into the end of 2020 and at some point in 2021.

Should this confluent support give way – the next big item looks to be around the 91.00 handle, after which the psychological level of 90 comes into view followed by 88.25, which is the 50% marker of the 2011-2017 major move as well as the current six year low.

To learn more about hammers or evening star formations, join us in DailyFX Education

US Dollar Monthly Price Chart

US Dollar Monthly Price Chart

Chart prepared by James Stanley; USD, DXY on Tradingview

EUR/USD Remains in Range

Despite all of the fireworks in the headlines over the past few months, EUR/USD has built into a fairly consistent range between 1.1600 and 1.1900. The big question is whether the ECB is going to unleash a bazooka of stimulus at their December meeting; and while many market participants are expecting an announcement of some sort, questions abound about how large any program may be.

The big item on the docket for this week out of Europe is the inflation print to be released on Wednesday morning.

EUR/USD Eight-Hour Price Chart

EURUSD Eight Hour Price Chart

Chart prepared by James Stanley; EUR/USD on Tradingview

Cable (GBP/USD) Catches Resistance, but Bulls Persist

GBP/USD has similar seen strength through much of November to go along with a really weak US Dollar. The pair ran into a big zone of resistance last week from 1.3250-1.3275. That resistance check led-in to a quick pullback, but so far this week buyers have persisted to keep the short-term trend running higher.

This gives the allusion of a possible re-test of that resistance zone, and given the rising trendline sitting underneath price action, there may be scope for bullish breakout potential. The UK releases inflation numbers on Wednesday morning, a few hours ahead of the European release, and this looks to be the main item of excitement for GBP/USD on this week’s economic calendar.

GBP/USD Four-Hour Price Chart

GBPUSD Four Hour Price Chart

Chart prepared by James Stanley; GBP/USD on Tradingview

--- 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