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
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
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
Gold
Bearish
Oil - US Crude
Bearish
Bitcoin
Mixed
More View more
Real Time News
  • Is that Hong Kong? Iran? Chile, perhaps? Nope, that'd be Paris, France... https://t.co/JTD0TL5RFI
  • #Euro area stocks may be preparing to break the four-month uptrend built around hopes for a US-China trade deal and an orderly #Brexit outcome. Get your market update from @IlyaSpivak here: https://t.co/ujlCJiXLvh https://t.co/tgq1jyblnN
  • 💵 US Dollar Set for Volatility with NFP Data & Fed Meeting on Deck (via @DailyFX) ➡️ Full Analysis: https://www.dailyfx.com/forex/fundamental/us_dollar_index/usd_trading_today/2019/12/05/us-dollar-volatility-due-to-rise-with-jobs-data-fed-on-deck.html $USD $DXY #Forex #Trading #FOMC #Jobs https://t.co/cdeBn1fvvt
  • The US Dollar eyes its worst week since October as the Euro and British Pound rose. Treasury bills saw their lowest yield since 2018, likely reflecting US-China trade deal skepticism - https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/asia_am_briefing/2019/12/06/US-Dollar-Drop-Eyes-Support-as-the-Euro-and-British-Pound-Rise.html?CHID=9&QPID=917702 https://t.co/Glqk2x99ml
  • Japanese Yen edging higher early into Asia's Friday trading session #USDJpy #AUDJPy #NZDJPY #EURJPY https://t.co/kiQa2fji2X
  • Ahead of the #UKelection next week, take the time to read up on how politics impacts markets - https://www.dailyfx.com/forex/fundamental/article/special_report/2019/07/04/How-to-Trade-the-Impact-of-Politics-on-Global-Financial-Markets.html
  • Most major central banks won’t meet again until mid-January or early-February. For those with meetings remaining in 2020, no rate moves are expected. Get your market update from @CVecchioFX here:https://t.co/5cVZK98H7H https://t.co/femYKxszVV
  • $USD $CAD $MXN https://t.co/p3bP1d58In
  • #USDCHF pivot points (daily) – S3: 0.9823, S2: 0.9851, S1: 0.9862, R1: 0.9889, R2: 0.9906, R3: 0.9934 - https://www.dailyfx.com/pivot-points?ref=SubNav?utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • Despite hollow assurance from Washington officials that talks are going “well”, markets appear to not be convinced as the potency of these remarks to elicit hope has waned.
Commodity Currencies Advance Towards Larger Technical Boundaries

Commodity Currencies Advance Towards Larger Technical Boundaries

2010-03-05 15:34:00
John Kicklighter, Chief Currency Strategist
Share:

Underlying sentiment trends have held a moderate bullish bias over the past few weeks; but momentum has notably lacked in this closely monitored trend. From a technical perspective, this restraint can be assigned to the proximaty of notable technical boundaries across the different asset classes and currency crosses. Fundamentally, the influx of speculative capital has been tempered by the presence of large economic concerns (sovereign debt risk, a potential European crisis developing out of Greece's troubles, the rollback of stimulus around the world, etc). These headwinds are constant and will not fully dissipate for quite some time. Therefore, the impact this wall of concern has on the markets will fully depend on the market's appetite for yield and its assessment of general instability. Naturally, this leaves the commodity currencies - highly attuned to risk trends - carving an uneasy course. It is particularly interesting that despite relative stability in sentiment and price actoin this past week, the Australian dollar would find little headway on a strong 4Q GDP reading and an RBA hike to 4.00 percent. Uncertainty is a force in its own right. A stabalizing force.

Considering price action is currently anchored by uncertainty, it is best to wait for relief whereby the markets can turn back to establishing new trends. Under these conditions, playing clear and well-worn ranges as well as awaiting a clear breakout represent the best general strategies to take. I have one of each. USDCAD is carving a very broad descending wedge formation with 1.02 as a notable floor. Having fallen six consecutive days, the potential for a reversal near the floor of this pattern is growing more and more probabe (especially as price action is slowing in its approach); however, I would rather play this as a breakout scenario with a push below 1.02. The reason for this is that USDCAD is naturally adverse to aggressive trends. Yet breakout momentum is the same as with any pair. Therefore, a confirmed move below 1.02 will encourage me to enter a short with a stop set above the previous daily bar's high and a first target just above parity. For a range setup, I like NZDUSD testing its falling trend of highs starting on Jan 22. I will look for a short entry at 0.6985 which will carry a stop of 0.7025 and a first target of 0.6850.

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

DISCLOSURES

News & Analysis at your fingertips.