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.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
Oil - US Crude
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
  • Canadian Dollar snapped a three-week losing streak after USD/CAD stalled at key technical resistance. Get your CAD weekly forecast from @MBForex here:
  • Forex quotes reflect the price of different currencies at any point in time. Since a trader’s profit or loss is determined by movements in price, it is essential to develop a sound understanding of how to read currency pairs. Learn how to read quotes here:
  • A currency carry trade involves borrowing a low-yielding currency in order to buy a higher yielding currency in an attempt to profit from the interest rate differential. Find out if the carry trade suits your trading style here:
  • Get your snapshot update of the of top level exchanges and key index performance from around the globe here:
  • Traders utilize varying time frames to speculate in the forex market. The two most common are long- and short-term-time frames which transmits through to trend and trigger charts. Learn more about time-frame analysis here:
  • The Nasdaq 100 index is aiming to breach a key resistance level at 14,950 for a second time. A successful attempt may open the door to further gains, although the MACD indicator flags signs of weakness. Get your equities forecast from @margaretyjy here:
  • Currency exchange rates are impacted by several factors. Are different world leaders a contributing factor? Find out here:
  • Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Learn about FX leverage here:
  • Trading Forex is not a shortcut to instant wealth, excessive leverage can magnify losses, and sentiment is a powerful indicator. Learn about these principles in depth here:
  • Although the medium-term outlook remains negative, Bitcoin could make a bullish move in the coming days if prices manage to hold above key support in the $29,150/28,600 region. Get your #Bitcoin forecast from @DColmanFX here:
Dow Jones Industrial Average Softens on Hawkish Fed Tone

Dow Jones Industrial Average Softens on Hawkish Fed Tone

Jeremy Wagner, CEWA-M, Head of Education

Talking Points

-Dow Jones Industrial Average (DJIA) trades lower on a more hawkish Fed

-DJIA current corrective pattern likely to eat up more time on sideways to lower trading

-Dow Jones Sentiment suggest continued drifting lower

DJIA is trading lower over the past 24 hours but in general there seems to be a ‘calm’ about the sell off. This is despite the more hawkish tone released in the Fed minutes Wednesday afternoon. Fed futures are pricing for a June rate hike have increased from 4% earlier in the week to 30%. Though up dramatically, if you take a step back, there is still a 70% chance of rates staying the same. As a result, DJIA is holding up fairly well at the moment.

We began talking on May 6 about a correction lower in US30, a CFD which tracks the DJIA, whereby this correction is likely to chew up time more so than price. The technical structure of price action since the April 20 high is corrective with overlapping 3 wave moves.

Dow Jones Industrial Average Softens on Hawkish Fed Tone

The correction lower has retraced minimally in price, but is shallow in time. Said another way, prices may continue to move lower, but it appears to be more of a drift than a waterfall.

The next zone of technical support appears near 16,900-17,144. We will look for prices to grind lower and see how prices react in this support zone.

Dow Jones Industrial Average Softens on Hawkish Fed Tone

Regarding sentiment, the Speculative Sentiment Index shows the number of short positions are grinding lower as prices have been grinding sideways (see red line in sub-chart above). This evaporation of short traders suggests that shorts think prices may bounce and are exiting their positions. Long positions are up slightly but not dramatically so the conclusion is that shorts are exiting. Ideally, we would like to see short traders renew their interest since we use SSI as a contrarian type of tool. If we see the SSI reading grow more negative indicating more interest on the short side, then we can begin to look for a tradable low.

Learn more about Speculative Sentiment Index with this 5 minute video.

The above is a shorter term forecast for Dow Jones. If you are interested in our Q2 2016 equities forecast, download it here.

Suggested Reading:

Dow Jones Report (May 11, 2016)

S&P500: When Will It Crack? (May 18, 2016)

---Written by Jeremy Wagner, Head Trading Instructor, DailyFX EDU

Follow me on Twitter at @JWagnerFXTrader .

See Jeremy’s recent articles at his Bio Page.

Check out the latest standings for the FXCM trading contest HERE.

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