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
Wall Street
Bearish
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
More View more
Real Time News
  • *Reminder: Weekly Strategy Webinar Monday morning at 8:30am ET - https://t.co/lxd5fZnn4H Mid-Week Market Update on Wednesday at 9:30am ET - https://t.co/8SFBJxNZrA
  • Are you new to trading? Technical analysis of charts aims to identify patterns and market trends by utilising different forms of technical chart types and other chart functions. Get a refresher on technical analysis or begin building your knowledge here: https://t.co/qV3c7a4YR3 https://t.co/CJR61cljOe
  • (AUD Weekly Tech) Australian Dollar May Wilt, Downtrends Resume: AUD/USD, AUD/JPY, AUD/NZD, AUD/CAD https://www.dailyfx.com/forex/technical/article/fx_technical_weekly/2021/09/19/Australian-Dollar-May-Wilt-Downtrends-Resume-AUDUSD-AUDJPY-AUDNZD-AUDCAD.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/DedoOKJMXh
  • Entry orders are a valuable tool in forex trading. Traders can strategize to come up with a great trading plan, but if they can’t execute that plan effectively, all their hard work might as well be thrown out. Learn how to place entry orders here: https://t.co/1mnOXUuBpt https://t.co/GQB0ic9Ahe
  • The continuity seen across these volatility cycles is a good thing. Historical precedence offer a blueprint for identifying conditions supportive for a vol-event to occur, and how they may unfold. Deepen your knowledge of historical volatility here: https://t.co/vg7w10la3j https://t.co/lx3cMSpZNc
  • Further your forex knowledge and gain insights from our expert analysts on EUR with our free guide, available today: https://t.co/XtydfUNW0y https://t.co/n4NXZUovb0
  • Scoping out next week for trading the market, there are a range of high profile influences including September PMIs, Evergrande and a range of central bank decisions. Top listing on my docket is the #FOMC with my scenarios below. Full analysis: https://www.dailyfx.com/forex/video/daily_news_report/2021/09/18/SP-500-and-Dollar-on-the-Hook-for-Breaks-with-Evergrande-Fed-and-September-Trade-Ahead.html https://t.co/ZdoMJS9fp5
  • Looking for a new way to trade reversals? One of the most used reversal candle patterns is known as the Harami. Like most candlestick formation patterns, the Harami tells a story about sentiment in the market. Get better with trading reversals here: https://t.co/rfwUWJfbz9 https://t.co/Q3Yfe6TMLw
  • The non-farm payroll (NFP) figure is a key economic indicator for the United States economy. It is also referred to as the monthly market mover. Find out why it has been given this nickname here: https://t.co/yOUVEEqhc5 https://t.co/6inC94w5K4
  • All eyes on the Fed on Wednesday as investors weigh on chances of a taper announcement. Get your weekly equities forecast from @HathornSabin here: https://t.co/Cv06XcvldF https://t.co/I12g2YPkdE
A "Trade-or-Fade" Scenario for EUR/USD

A "Trade-or-Fade" Scenario for EUR/USD

Kathy Lien, Technical Strategist

Thursday’s Eurozone PMI data is the key catalyst for EURUSD price action, and the pair could either power higher to 1.35, or possibly put in a double top and fall below key resistance at the 1.34 level.

The euro (EUR) may have lost value against the US dollar (USD) on Wednesday, but it ended the North American trading session well off earlier lows. The Eurozone's August manufacturing and service sector PMI numbers are scheduled for release Thursday, and investors are holding out hope that the data will surprise to the upside, providing additional fuel for the EURUSD rally.

Despite the pullback, 1.35 is still in sight, and a large part of the recent strength in the euro can be attributed to unexpected improvements in the Eurozone economy and disappointments in US data. However, there is very little conviction as to whether these trends can continue, which is why currencies have been so sensitive to data.

Based on stronger German industrial production, factory orders, and investor confidence, we believe that the recovery in manufacturing and services extended into the month of August. If we are wrong, however, EURUSD could drop below 1.33, putting the overall uptrend at risk.

The 1.34 level continues to be a significant point of resistance for the pair, and Thursday's PMI data could decide whether or not the recent selloff turns into a double top.

GBP/USD Looks Due for Retracement

The British pound (GBP) rose for the sixth consecutive trading day against the dollar, hitting fresh two-month highs in the process.

Government borrowing numbers were worse than expected in the month of July, with public sector net borrowing ex interventions reporting a marginal deficit of GBP 0.1 billion versus expectations for a GBP 2.9 billion surplus. July is usually a month of surplus because of additional tax receipts, but this was the first time since 2010 that July produced a deficit instead.

The public sector net cash requirement, on the other hand, was better, reporting a surplus of GBP 19.6 billion versus expectations of GBP 8.7 billion.

We feel that sterling received its strength primarily from better-than-expected manufacturing data. According to the Confederation of British Industry (CBI) industrial trends survey, orders rose at the fastest pace in two years. The order balance book was flat in August, which was the best reading since 2011 and represents a major improvement from the -12 reading in August.

The director of economics for the CBI said "UK manufacturers seem to be experiencing a build-up in momentum, but risks in the global economy still mean that it won't be plain-sailing for some time to come."

No UK economic reports are scheduled for release on Thursday, and while the GBPUSD June high of 1.5750 could still be tested, the move in the pair has become overstretched, and we feel that a retracement is due.

By Kathy Lien of BK Asset Management

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

DISCLOSURES