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
Bullish
GBP/USD
Mixed
USD/JPY
Mixed
Gold
Mixed
Oil - US Crude
Bullish
Bitcoin
Mixed
More View more
Real Time News
  • Philippine keeps CPI assumption through 2020 at 2%-4%, latest estimates on 2020-2022 GDP growth at 6.5% to 7.5% -BBG $USDPHP #PHP #BSP
  • Commodities Update: As of 03:00, these are your best and worst performers based on the London trading schedule: Gold: -0.04% Silver: -0.18% Oil - US Crude: -0.50% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/LgsPNfcKsp
  • Forex Update: As of 03:00, these are your best and worst performers based on the London trading schedule: 🇦🇺AUD: 0.05% 🇪🇺EUR: 0.01% 🇨🇭CHF: -0.01% 🇨🇦CAD: -0.05% 🇬🇧GBP: -0.15% 🇳🇿NZD: -0.28% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/OY4a8ADSNd
  • Missed this week's session on IG Client Sentiment? Check out the recording on YouTube below! - https://t.co/89A37fRLyg
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 98.16%, while traders in US 500 are at opposite extremes with 77.31%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/MkBuM9u61U
  • On the first day of holiday movies, John McClane had to say, "welcome to the party and yippee-ki-yay"
  • #NZDJPY Technical Outlook: Bearish Correction Ahead? https://www.dailyfx.com/forex/market_alert/2019/12/11/NZDJPY-Technical-Outlook-Bearish-Correction-Ahead.html
  • Japan's Chief Cabinet Secretary Suga: Paying close attention to the economy after the sales tax hike -BBG
  • $USDCNH https://t.co/huK7xAti8U
  • RT @zerohedge: Yuan Tumbles After Navarro Warns "No Indication That Tariffs Will Be Delayed" https://t.co/mQlQTiQjgM
FX Reversals USDollar Trading Range Update

FX Reversals USDollar Trading Range Update

2014-09-11 13:52:00
Walker England, Forex Trading Instructor
Share:

Talking Points

  • USDollar Opens in a Range
  • R3 Resistance Sits at 10,858
  • Market Breakouts Signaled Above 10,873

GBPUSD 30min Chart

FX Reversals USDollar Trading Range Update

(Created using FXCM’s Marketscope 2.0 charts)

Suggested Reading: Trading Intraday Market Reversals

Despite its strong gains so far throughout the trading week, The Dow Jones FXCM Dollar Index (USDollar) has stalled today inside of a trading range. As seen above, price has already traversed the daily trading range multiple times, and is still trading between support and resistance. Currently price is trading near its central pivot at 10,844. Range traders will wait for price to either meet resistance at the R3 pivot at a 10,858 or test support at S3 pivot before planning any additional entries.

Even though price is currently range bound, conditions can change quickly for the USDollar. A price breakout above R4 pivot resistance at 10,858 would signal a strong continuation back in the direction of the USDollar’s daily trend. Month to date, the Index has moved as much as 235 points higher. Knowing this, breakout traders will look to pick entries as key lines of resistance collapse. Conversely a price move below the S4 line of support would increase the potential for a counter trend reversal, on the creation of a lower low. In either breakout scenario, ranging markets will be considered concluded with traders looking to take orders with the newly created daily momentum.

FX Reversals USDollar Trading Range Update

---Written by Walker England, Trading Instructor

To contact Walker, email instructor@dailyfx.com. Follow me on Twitter @WEnglandFX.

To be added to Walker’s e-mail distribution list, CLICK HERE and enter in your email information.

Previous Market Setups:

FX Reversals: USDCHF Trading Values

FX Reversals: CADJPY Breakout

FX Reversals: USDCAD Post News Update

FX Reversals: GBPNZD Tests Daily Resistance

FX Reversals: GBPUSD Range Reversal Update

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

DISCLOSURES

News & Analysis at your fingertips.