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.



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
Oil - US Crude
Wall Street
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
  • The outlook for the $EURUSD pair has worsened after its failure to move back to the high just above 1.20 touched on September 1 despite the #ECB’s decision earlier this month not to talk down the Euro. Get your #currencies update from @MartinSEssex here:
  • #USDollar Outlook Bearish on Mnuchin & Powell Testimonies, Key US Data ⬇️
  • The London trading session accounts for around 35% of total average forex turnover*, the largest amount relative to its peers. The London forex session overlaps with the New York session. Learn about trading the London forex session here:
  • The Federal Reserve System (the Fed) was founded in 1913 by the United States Congress. The Fed’s actions and policies have a major impact on currency value, affecting many trades involving the US Dollar. Learn more about the Fed here:
  • The Japanese #Yen may continue to exhibit a bullish behavior as the Bank of Japan (BoJ) appears to be in no rush to alter the path for monetary policy. Get your #currencies update from @DavidJSong here:
  • The New Zealand Dollar appears poised to extend its climb against its haven-associated counterparts as long-term trend break hints at cyclical upturn. Get your $NZDUSD market update from @DanielGMoss here:
  • The US Dollar may rise against ASEAN currencies like the Singapore Dollar if local retail sales and sentiment data disappoints. USD/IDR may fall on the Bank of Indonesia. Get your market update from @ddubrovskyFX here:
  • The US Dollar may rise against the Singapore Dollar and Philippine Peso. USD/MYR’s downtrend holds, but a bullish pattern brews. USD/IDR seems stuck between key technical levels.Get youe #ASEAN currencies market update from @ddubrovskyFX here:
  • There are three major forex trading sessions which comprise the 24-hour market: the London session, the US session and the Asian session. Learn about the characteristics of each session here:
  • The #Dollar has bottoming potential, but that is starting to lose weight as it fails to sustain any lift; next week could be a big one for #USD’s near-term outlook. Get your #currencies update from @PaulRobinsonFX here:
Dow Jones Industrial Average Steadies Ahead of US Jobs Report

Dow Jones Industrial Average Steadies Ahead of US Jobs Report

2016-07-07 12:47:00
Jeremy Wagner, CEWA-M, Head of Education

Talking Points

-Dow Jones Industrial Average (DJIA) steadies near pre-Brexit highs

-US Jobs report (NFP) releases Friday morning and may spark some volatility

-Sentiment (SSI) signals more bullish potential for DJIA

After a booming rally to finish the month of June strong, Dow Jones Industrial Average has been consolidating recent gains and trading in a sideways range. DJIA is trading near similar levels to the pre-Brexit vote and is behaving like a near term crisis is averted.

Overnight we saw China release their FX reserve figures and it came in much stronger than anticipated. This is important to DJIA because China has the largest stockpile of FX reserves and that figure has been trending lower indicative of a weakening economy. Fears of China intervening to devalue their currency has been on the minds of traders subsequent the Brexit vote. The fear was that a ripple effect of the Brexit vote would stress the Chinese economy and force PBOC to act creating additional volatility like what we witnessed in August 2015.

Dow Jones Industrial Average Steadies Ahead of US Jobs Report

China’s FX reserve amount rose unexpectedly by $20 billion while there was an expectation for another reduction. Therefore, this “boogey man” goes back into the closet for now. Looking ahead, we have the US jobs report hitting the wires Friday morning. The expectation is for growth of 180k jobs. An extreme reading outside of the expected could impact the outlook on central bank target interest rates. If the reading comes in much lower, then that would signal 2 months in a row of weak jobs growth and likely squash any remaining hopes of a rate hike in 2016. If the reading comes in significantly higher, then the previous month’s weak reading may be seen as an aberration and expectations for a December 2016 hike enter the discussions. (Currently, Fed Fund futures is pricing in a 13% chance of a hike in December.)

Analyzing the technical picture for US30, a CFD which tracks the DJIA, shows it is maintaining a bullish structure. However, the better risk to reward ratio would be to buy on a dip below 17,148 or on a break above 18,167. (See suggested reading below for additional comments.)

Suggested Reading: Dow Jones Industrial Average Punches Back After Brexit Collapse

From a sentiment perspective, Speculative Sentiment Index (SSI – pictured above) continues to flash a bullish signal for US30. The SSI reading is -4.21 as only 19% of traders in a position are long. This is a contrarian indicator that signals US30 may continue higher.

Learn more about SSI and live trader positioning here.

Therefore, until 15,503 is broken, we are maintaining a bullish bias.

Interested in a longer term outlook for equities? Download our quarterly forecast here.

While navigating the volatile market, be mindful that leverage on trades exaggerates the markets movements. We urge low amounts of leverage or no leverage at all in these environments. (Read more about the effects of leverage in our Traits of Successful Traders research.)

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

Follow me on Twitter at @JWagnerFXTrader .

See Jeremy’s recent articles at his Bio Page.

To receive additional articles from Jeremy via email, join Jeremy’s distribution list.

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