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
EUR/USD
Mixed
Oil - US Crude
Mixed
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
Gold
Bullish
GBP/USD
Mixed
USD/JPY
Bullish
More View more
Real Time News
  • No follow through on the Nasdaq's and S&P 500's record high close yesterday. Not surprising with the FOMC on the forward looking threat radar. Meanwhile, the Dow is listing dangerously like a boat taking on water. Will the Fed save or sink? https://t.co/GIkChQdOKZ
  • IG Client Sentiment Update: Our data shows the vast majority of traders in USD/CHF are long at 75.11%, while traders in France 40 are at opposite extremes with 79.40%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/K4d2XxyGdx
  • WTI enjoying another strong session, up over 1% on the day and currently trading just below $72/bbl #Oil $CL_F #WTI https://t.co/UGf668BEt4
  • IG client sentiment data are sending bullish signals for both USD/CHF and EUR/CHF, suggesting a weaker Swiss Franc all around. Get your market update from @MartinSEssex here:https://t.co/2DJ7HuVnRP https://t.co/4xaNF4FjXN
  • Commodities Update: As of 16:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 1.25% Gold: -0.62% Silver: -1.30% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/WsLmJFTVct
  • $DXY $USD | US Dollar Index little changed after tagging its negatively sloped 50-day simple moving average earlier in the session as markets get positioned for FOMC event risk tomorrow. https://t.co/d7DE8WF0ZI
  • 🇷🇺 GDP Growth Rate YoY Final (Q1) Actual: -0.7% Expected: -1% Previous: -1.8% https://www.dailyfx.com/economic-calendar#2021-06-15
  • Indices Update: As of 16:00, these are your best and worst performers based on the London trading schedule: FTSE 100: -0.02% France 40: -0.02% Germany 30: -0.06% US 500: -0.34% Wall Street: -0.52% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/SalQF25bMw
  • Heads Up:🇷🇺 GDP Growth Rate YoY Final (Q1) due at 16:00 GMT (15min) Expected: -1% Previous: -1.8% https://www.dailyfx.com/economic-calendar#2021-06-15
  • USD/JPY trades to a fresh weekly high (110.17) as longer-dated US Treasury yields recover ahead of the Federal Reserve interest rate decision. Get your $USDJPY market update from @DavidJSong here:https://t.co/9iWCr5sxZS https://t.co/RDUNS9V0Vn
Forex Sentiment & Volume Analysis - GBPUSD

Forex Sentiment & Volume Analysis - GBPUSD

Rob Pasche, Forex Trading Instructor

Talking Points:

  • GBPUSD broke to new lows
  • Breakout occurred on large volume
  • GBPUSD SSI reached +3, retail participants were 75% long

Since the last time we looked at the GBPUSD, the Pound has fallen about 200 pips, much to the delight of sentiment and volume traders. We had noticed that volume was increasing while price was falling and that most retail traders were long GBPUSD. Both of these signaled further GBPUSD decline.

Today will be an update about where we could position our accounts based on the latest sentiment and volume readings. Also, if you wanted to use sentiment and volume in your own trading, the following links show you how to access these tools.

Retail Sentiment is acquired using DailyFX Plus’ Speculative Sentiment Index. It is free for real FXCM account holders, but is also free for anyone using a two week trial: DailyFX Plus Trial

Retail Volume is available on FXCM’s Trading Station Desktop platform. This free software can be downloaded here and a free demo login can be acquired here. Real Volume is a default indicator that can be added to your charts.

GBP/USD Breakout on Above Average Volume - Bearish

One use for real volume is as a breakout confirmation tool. What traders look for are times when price breaks above or below support or resistance with an unusually high amount of volume. When there is a large amount of volume during a move, this tells us there was stronger conviction than had the break occurred on low volume.

In the chart below, we can see the spike in volume that was generated while GBPUSD broke a significant level of support. While we haven’t seen much follow through today, there are definitely many traders watching this pair if it breaks again.

Learn Forex: GBP/USD Breakout on Above Average Volume

Forex Sentiment & Volume Analysis - GBPUSD

(Created using Marketscope 2.0 charts)

Today, we did see another low created, but later price retraced. This may be disheartening for short GBPUSD traders, but the retracement occurred with about half the volume that was generated when the actual breakout occurred. This could be seen as a bearish signal in itself.

GBPUSD SSI Reaches Extreme Positive Reading - Bearish

There was a historic moment last week when GBPUSD reached an SSI level of +3. This means that 75% of GBPUSD traders at FXCM were long, a major sentiment reading. In fact, this was the highest SSI we’ve seen on the GBPUSD in almost 2 year.

The chart below was copied from DailyFX On-Demand’s Live SSI portal. This gives us more accurate sentiment data for the last 3 months. The spike in SSI coincided with the breakout in the GBPUSD. Since then, SSI has moved to a ‘tamer’ +1.6, meaning the ratio of longs to shorts is around 60/40

Learn Forex: GBP/USD SSI Reaches Two Year High

Forex Sentiment & Volume Analysis - GBPUSD

(Screen capture from DailyFXOn-Demand)

I’d like to see SSI climb back above +2.0, because in the past 3 months, we’ve seen our biggest drops at those levels. But as long as SSI remains positive, my short bias remains.

In Conclusion

We continue to look for Cable to fall further with the help of positive SSI and confirming volume. Feel free to utilize a demo account to practice trading risk-free before trading with real money and perform your own due diligence.

Good trading!

---Written by Rob Pasche

Video Lessons || Free Forex Training

Trading Using Fibonacci (13:08)

Reading the RSI, Relative Strength Index (13:57)

Money Management Principles (31:44)

Trade Like a Professional Workshop (1:44:14)

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

DISCLOSURES