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
Wall Street
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
More View more
Real Time News
  • Feels like the market has been front-running next week’s FOMC announcement, which will reveal updated dot plot projections. Expectations clearly set for a more hawkish shift in guidance. That said, if the Fed does not deliver, US Dollar bulls could be disappointed. $USD $DXY https://t.co/o2v6ibac3L
  • USD/CAD has been chopping around the past week-and-a-half, offering virtually no cues on its next direction. Get your market update from @PaulRobinsonFX here:https://t.co/eq1YkOa3mC https://t.co/V6h8BjyeGa
  • FDA panel votes 16-3 against approving Covid-19 booster shots - BBG
  • RT @C_Barraud: 🇺🇸 Americans Haven’t Been This Down on #Housing Market Since 1982 - Bloomberg *Link: https://t.co/wWFnbAwIDO https://t.co/6G…
  • US Dollar Price Action Setups Pre-FOMC: EUR/USD, GBP/USD, USD/CAD https://www.dailyfx.com/forex/analyst_picks/todays_picks/james_stanley/2021/09/17/US-Dollar-Price-Action-Setups-pre-FOMC-EURUSD-EUR-USD-GBP-USD-GBPUSD-USD-CAD-USDCAD.html https://t.co/J25MYsXCa9
  • The US Dollar is pushing up to a fresh September high after the release of University of Michigan Consumer Sentiment data. Get your $USD market update from @JStanleyFX here:https://t.co/2CDNZh2a89 https://t.co/bULXuCaHKk
  • I have this $SPX chart taking over one of my whole screens, and I just keep staring at that 50-day moving average... https://t.co/R9LQAuL2DL
  • RT @TheStalwart: Nice chart, which shows why countries in green on the perimeter, like Iran, Peru, and Turkey are known for their stability…
  • Selling pressure strengthening in Wall Street two hours before the close. S&P 500 down roughly 1% intraday, the largest decline since August 18th #trading $SPX $SPY
  • One of the strongest correlation with Bitcoin at the moment is the US 10-Year Treasury yield https://t.co/uZBzJ7yiXf
Dollar Options for a Clear Bearing

Dollar Options for a Clear Bearing

John Kicklighter, Chief Strategist

The Dollar is not particularly easy to project. It carries a lot of fundamental baggage with interest rate forecasting struggling to leverage the long-expected recovery from 2017's slide lower and the traditional safe haven role drawing debate over its appeal in our otherwise unique conditions. Picking a definitive view on the Greenback seems unreasonable, but assuming volatilty in the near future seems a safe bet. That being said, I like to evaluate options for a bullish or bearish outcome with a common vein of volatility.

For a bullish Dollar performance, we would likely require an extreme charge of risk averison or the currency's counterparts would need to universally collapse. Not highly likely, but certainly possible outcomes. If we find these favorable conditions, I will look to EURUSD to clear 1.1500 support as a technical milestone that gives additional speculative weight to a fundamental development on the exchange rates. Yet, even if we do see this progress in favor of USD, I will remain cautious of follow through with a progressive chase on any stop along the way.

EURUSD  Daily Chart

On the opposite end of the spectrum, I see more short-term interest on bearish opportunities against the Dollar after its multi-month advance. Among the majors, I like USDJPY close to trendline resistance around 110.75 as a trendline stretching back to October's swing high. A risk aversion could readily sweep the Dollar as an instigator which is my preferred scenario for USDJPY, but setting anticpation for strong follow through is a stretch in these frustratingly restrained markets.

From other pairs, I like the same counter-trend appreciation the USDCAD evokes. The Candian Dollar has developed persistent trends higher and then lower as the fundamental tide has changed. Having leveled up to a pivot and Fib combination at 1.34, there has been a clear point of hesitation. If we start to see a full stall shy of 1.3400 evolving into fresh daily lows, I will consider this a pair worthy of our attention and perhaps trades.

Finding the way outside of the United States' unpredictable headlines and market reaction, it is difficult to find a perfectly liquid pair that fits needs for consistency and opportunity. From CADCHF, we have an off the beaten path. With strong underlying trends from both currencies over the past weeks and months, many are just trying to shelter to avoid the harsh reprecussions in an overactive postion in a limited market. I will look for further retreat from this key pair with risk trends and perhaps policy diergence shaping the way.

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

DISCLOSURES