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.

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
EUR/USD
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
Oil - US Crude
Bearish
Wall Street
Bearish
Gold
Mixed
GBP/USD
Bullish
USD/JPY
Bearish
More View more
Real Time News
  • Forex Update: As of 16:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.27% 🇨🇦CAD: 0.03% 🇦🇺AUD: -0.15% 🇯🇵JPY: -0.26% 🇪🇺EUR: -0.32% 🇬🇧GBP: -0.50% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/uA8LbRVDYj
  • Indices Update: As of 16:00, these are your best and worst performers based on the London trading schedule: Germany 30: -0.02% US 500: -0.09% Wall Street: -0.10% France 40: -0.13% FTSE 100: -0.16% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/W40Vx8cpJi
  • Get your Thursday market update from @DailyFX Chief Strategist @JohnKicklighter 👇. He covers the US Presidential debate and more! https://t.co/9s7A2Y7Az4
  • US Eight-Week Bills Draw 0.090% Primary Dealers Awarded: 49.6% Indirect Bidders Accepted: 39.6% Direct Bidders Accepted: 10.8% B/C Ratio: 3.51
  • If the market's speculative leaders and its once-leading speculative catalysts can't reinvigorate a well-established bull trend, something significant is anchoring us
  • curious to see the results on this poll 👇 https://t.co/Yd0YgmUky5
  • We are now less than two weeks away from the US Presidential Election 🇺🇸. What do you think the #FX market impact will be?
  • Pelosi says 'just about there' on relief deal - BBG
  • $CSX - the rail shipping company that I consider a good proxy to growth - managed announced its $5 billion share buyback last night, which is cat nip to stocks, and it too can't follow through on its opening gap
  • Tesla offered up an earnings beat last night and the speculative favorite that is up 412% (!) on the year is spinning its tires today in the aftermath
US Dollar Rally Being Put to the Test: EUR/USD, USD/CAD, USD/JPY

US Dollar Rally Being Put to the Test: EUR/USD, USD/CAD, USD/JPY

2020-10-01 12:29:00
Paul Robinson, Strategist
Share:

US Dollar Highlights:

  • EUR/USD near top of downward sloping channel
  • USD/CAD dropping towards confluent support
  • USD/JPY looks wobbly here, watch short-term channel
Advertisement

EUR/USD not long ago broke down out of a multi-week range, and it looked like it might keep on declining, but that view is being put to the test. At the moment price is testing horizontal resistance via daily lows going back to August, while very near the top of the channel running lower off the September 1 high.

A test and turn down soon will keep the general outlook tilted more bearish than bullish, with a chance for selling to extend the trend to a new low below 11612. However, a climb above both horizontal resistance and the channel will tilt the outlook more favorably. It might not lead to a rip-roaring rally, but the risk is that we will continue to see EUR/USD work its way higher towards the high just over 12000.

Top Trading Lessons
Top Trading Lessons
Recommended by Paul Robinson
Find Out the #1 Mistake Traders Make
Get My Guide

EUR/USD Daily Chart (running into resistance area)

EUR/USD daily chart

EUR/USD Chart by TradingView

USD/CAD is doing something similar to EUR/USD, but instead of running into strong resistance there is solid support coming up. Tuning to the 4-hr chart, there is a trend-line running off last month’s low that is in confluence with neckline support from the inverse head-and-shoulders recently triggered. Whether you trade price patterns or not, the horizontal level running over from nearly two months ago is an important one with numerous inflection points, mostly as resistance. The area from 13260 to 13230 is considered an important one for the near-term outlook. Hold and USD/CAD could continue to rally, fail and the lows near 13000 will be at risk.

Building Confidence in Trading
Building Confidence in Trading
Recommended by Paul Robinson
Build confidence during these volatile times.
Get My Guide

USD/CAD 4-hr Chart (13260/30 is a big spot)

USD/CAD 4-hr chart

USD/CAD Chart by TradingView

USD/JPY is up against a couple of angles of resistance with trend-lines from June and July running over the top of recent price action. The general trend and resistance suggest we could see it sag some more soon towards the 10400 area. Getting in a little closer for timing purposes, keep a close eye on the hourly as a slightly upward sloping channel is keeping price contained. A drop outside of it with a 1-hr closing candle below 10540 (and subsequent daily close) could do the trick to set into a motion another round of selling.

USD/JPY Daily Chart (trend-line resistance)

USD/JPY daily chart

USD/JPY 1-hr Chart (watching channel, 10540)

USD/JPY 1-hr chart

USD/JPY Charts by TradingView

Resources for Forex Traders

Whether you are a new or experienced trader, we have several resources available to help you; indicator for tracking trader sentiment, quarterly trading forecasts, analytical and educational webinars held daily, trading guides to help you improve trading performance, and one specifically for those who are new to forex.

---Written by Paul Robinson, Market Analyst

You can follow Paul on Twitter at @PaulRobinsonFX

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

DISCLOSURES