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.

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
Bullish
Oil - US Crude
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
Wall Street
Mixed
Gold
Mixed
GBP/USD
Mixed
USD/JPY
Bullish
More View more
Real Time News
  • Recessions can devastate the economy and disrupt the fortunes of individuals, businesses, and investors. But economic decline in the business cycle is inevitable, and your trading can be defined by how you respond to crisis. learn how to prepare here: https://t.co/e4CnobJCss https://t.co/w009tJEQZn
  • 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/2AeO1AdD2M
  • MACD who? The Moving Average Convergence Divergence (MACD) is a technical indicator which simply measures the relationship of exponential moving averages (EMA). Find out how you can incorporate MACD into your trading strategy here: https://t.co/ZNs4Qi8ieG https://t.co/INJz4NSugQ
  • Knowing how to accurately value a stock enables traders to identify and take advantage of opportunities in the stock market. Find out the difference between a stock's market and intrinsic value, and the importance of the two here: https://t.co/QszmdZX8cS https://t.co/qdrsi61CN8
  • It seems the markets are riding high, but risk is always lurking around the corner. Consider your escape plan before you find yourself in collapsing market. What are the top havens for different conditions in 2021? Find out from @JohnKicklighter here: https://t.co/1oeXWEsJkb https://t.co/IyQdfq29fz
  • Myth or fact? One thing is for sure, there are a lot of misconceptions about trading. Knowing the difference between common trading myths and the reality is essential to long-term success. Find out about these 'myths' here: https://t.co/EDvQdHfIPm https://t.co/R7pa7DsM8n
  • What are some monetary policies that could affect Gold this quarter? Get your Gold free forecast here: https://t.co/bTXkGN1CIM #DailyFXGuides https://t.co/EhdZpmkzaH
  • Even more remarkable than the record high levels of leverage registered in US equities this past week was the attention it garnered. Paying attention to risk is a threat when markets are this high and the docket as dense as it is this week. My outlook: https://www.dailyfx.com/forex/video/daily_news_report/2021/01/23/Dow-VIX-Tesla-and-Leverage-Reflect-Greater-Risk-to-the-Relentless-Bull-Market.html?ref-author=Kicklighter&QPID=917719&CHID=9 https://t.co/KBOJIRPTQe
  • Consolidation or bull flag? A bull flag is a continuation pattern that occurs as a brief pause in the trend following a strong price move higher. Learn how to better spot these formations here: https://t.co/yOEvLjKnct https://t.co/qP2PbS4dsY
  • 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/POGWDIkqqz
Euro at Risk, Dow Jones Has Best Day Since 1933 on Stimulus Bets

Euro at Risk, Dow Jones Has Best Day Since 1933 on Stimulus Bets

Daniel Dubrovsky, Analyst

Euro, US Dollar, Dow Jones, Japanese Yen, Australian Dollar – Asia Pacific Market Open

  • Euro is at risk to losses with my EUR index trading under key support
  • US fiscal stimulus anticipation pushed Dow Jones to best day since 1933
  • US Dollar still vulnerable with futures rising, all eyes on virus relief bill

Euro Broadly Weakens, US Fiscal Stimulus Bets Push Dow to Best Day Since 1933

Despite an uptick in EUR/USD, the Euro generally underperformed against its major counterparts on Tuesday. Most of its losses occurred during late European trade and the Wall Street session. During this time, the US Dollar managed to trim some of its losses during another volatile day. Broadly speaking, hopes of at least a US$2 trillion fiscal package from the world’s largest economy likely bolstered sentiment.

Traits of Successful Traders
Traits of Successful Traders
Recommended by Daniel Dubrovsky
Traits of Successful Traders
Get My Guide

As a result the Dow Jones climbed 11.37% in its best single-day performance since 1933. The S&P 500 soared 9.38% in the largest rise since October 2008. The anti-risk Japanese Yen underperformed as the sentiment-linked Australian and New Zealand Dollars soared. Heightened volatility in the near term can make these kinds of occurrences in stock markets more frequent, including record-breaking down days.

High expectations of US fiscal stimulus may have pushed investors to largely brush aside dismal local data. The IHS Markit Services PMI plunged to a record low 39.1 in March – preliminary - against 42.0 expected. A reading under 50 indicates contraction. If this trend continues as the coronavirus outbreak prolongs social isolation measures, US GDP would be at risk. Consumption accounts for about two-thirds of the economy.

Wednesday’s Asia Pacific Trading Session – US Dollar, Australian Dollar, Japanese Yen

In the interim, S&P 500 futures are pointing higher into Wednesday’s Asia Pacific trading session. That may spell a “risk-on” tone to continue, leaving the haven-linked US Dollar vulnerable. The Australian Dollar is aiming cautiously higher. All eyes are on the expediency of passing a US virus relief bill. Democratic leader Nancy Pelosi said she was optimistic that a deal could be reached soon. A delay risks souring market mood.

Starts in:
Live now:
Jan 27
( 01:01 GMT )
Recommended by Daniel Dubrovsky
What Do Other Traders Buy/Sell Bets Say About Price Trends?
Register for webinar
Join now
Webinar has ended

Euro Technical Analysis

My majors-based Euro index – which averages it versus USD, JPY, GBP and AUD – is still at risk to extending the top from earlier this month. A bearish Head and Shoulders pattern may be brewing. More worryingly, prices are trading under rising support from late February. Taking out lows from last week may open the door to further selling pressure in the Euro across the board.

EUR/USD BULLISH
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily -12% -2% -7%
Weekly -15% 24% 6%
What does it mean for price action?
Get My Guide

Majors-Based Euro Index 4-Hour Chart

Euro at Risk, Dow Jones Has Best Day Since 1933 on Stimulus Bets

Chart Created Using TradingView

--- Written by Daniel Dubrovsky, Currency Analyst for DailyFX.com

To contact Daniel, use the comments section below or @ddubrovskyFX on Twitter

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

DISCLOSURES