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
Real Time News
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 93.33%, while traders in Wall Street are at opposite extremes with 79.17%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/AY4wL5b1NV
  • Risk management is one of the most important aspects of successful trading, but is often overlooked. What are some basic principles or risk management? Find out from @PaulRobinsonFX here: https://t.co/IsnpfJhp91 https://t.co/NrcUfXKP8J
  • Forex Update: As of 04:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: 0.16% 🇬🇧GBP: 0.05% 🇪🇺EUR: 0.00% 🇦🇺AUD: -0.02% 🇨🇭CHF: -0.03% 🇳🇿NZD: -0.06% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/UwJz4Gv6hT
  • Indices Update: As of 04:00, these are your best and worst performers based on the London trading schedule: France 40: 0.12% FTSE 100: -0.02% Germany 30: -0.04% US 500: -0.16% Wall Street: -0.16% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/cGDe8jiSqf
  • Forex sentiment analysis can be a useful tool to help traders understand and act on price behavior. Learn how to get the most out of understanding trader sentiment here: https://t.co/rJznrXkcYz https://t.co/ne0HPR7lO2
  • China considers levies on steel exports to tame domestic prices - BBG
  • Emotions are often a key driving force behind FOMO. If left unchecked, they can lead traders to neglect trading plans and exceed comfortable levels of risk. Read on and get your emotions in check here: https://t.co/eILWbFgHRE https://t.co/lS2YP1HLe5
  • Commodities Update: As of 02:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 0.19% Gold: -0.06% Silver: -0.28% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/KmaQV410F5
  • Forex Update: As of 02:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: 0.13% 🇬🇧GBP: 0.04% 🇨🇭CHF: 0.02% 🇨🇦CAD: -0.01% 🇦🇺AUD: -0.07% 🇳🇿NZD: -0.12% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/nKS5zuXFsB
  • British Pound Technical Analysis: GBP/USD, GBP/AUD, GBP/CAD, GBP/NZD #GBP #Sterling $GBPUSD $GBPAUD $GBPCAD $GBPNZD https://www.dailyfx.com/forex/technical/article/special_report/2021/07/27/British-Pound-Technical-Analysis-GBPUSD-GBPAUD-GBPCAD-GBPNZD.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/soibdtPGXf
EURUSD and GBPUSD Trades Versus the More Volatile

EURUSD and GBPUSD Trades Versus the More Volatile

John Kicklighter, Chief Strategist

This past week, we have seen a material downshift in volatility and sidelining of dominant fundamental trends (such as an Emerging Market rout). As much as I would like to see the bigger themes - full-blown risk trends or a material monetary policy change - pick up, there are a number of hurddles that we need to clear before we get to that scale. In the meantime, there is plenty of short-term opportunity.

The only trade I'm carrying over from this past week is my AUDCAD (from 0.9865). Having already took the first half off for +95 below a heavy resistance, I have moved up the stop on the second half to breakeven. Parity (1.0000) is proving difficult to overcome. If we clear that threshold, the follow through can be substantial.

For short-term setups, the risk sensitive are good candidates. I was short GBPJPY this past week and managed to hit a first target of +135 before the second half was taken out at breakeven. If there is a close below 170 and/or move below 169.25 alongside an equity market drop, I'd like a short. Should the S&P 500 make a move to break 1850 (highly probable) a break above 171.75 would be a good long setup.

There are plenty of risk sensitive pairs out there that are immediately open to upside or downside breaks given the right impetus. EURJPY (above 141 or below 140 on a close basis). AUDJPY (above 93 or below 91).

EURUSD looks like a strong breakout candidate from 1.3775 to 1.3685, but it is unlikely to be a 'risk' move. I'd prefer to play a bearish break as a bullish move will be immediately troubled by heavy resistance at 1.3850.

GBPUSD is another attractive pair, but it is crawling through support without much drive. I like it below 1.6750, but momentum is a critical factor - otherwise, we are playing with fire in trying to pick a top. And it could be a long wait to hold off for 1.6250.

I like the immediate breakout potential of GBPAUD from its 1.8650 and 1.8450. A bigger play could come through a large head-and-shoulders neckline break below 1.8100. Similarly, a clean H&S can be seen on EURAUD with a necline at 1.5000.

Sign up for John’s email distribution list, here.

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

DISCLOSURES