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
More View more
Real Time News
  • Key levels in forex tend to draw attention to traders in the market. These are psychological prices which tie into the human psyche and way of thinking. Learn about psychological levels here:
  • Markets Week Ahead: Euro, Dollar, Gold, S&P 500, Earnings, Inflation Check out @RichDvorakFX's latest market recap and preview plus all the weekly forecasts from the @DailyFXTeam at the link below! Link to Analysis - $EURUSD $SPX #Trading
  • 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:
  • 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:
  • 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:
  • US indices have a packed week ahead with earnings from the major technology names, US GDP data due and an FOMC rate decision. With so much on the docket the potential for volatility is heightened. Get your stock market forecast from @PeterHanksFX here:
  • GDP (Gross Domestic Product) economic data is deemed highly significant in the forex market. GDP figures are used as an indicator by fundamentalists to gauge the overall health and potential growth of a country. Learn use GDP data to your advantage 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 US Dollar Index traded higher last week, sustaining its broader uptrend. Conflicting technical signals urge caution, but the directional bias remains skewed to the upside. Get your weekly USD technical forecast from @FxWestwater here:
  • Technical analysis of charts aims to identify patterns and market trends by utilizing differing forms of technical chart types and other chart functions. Learn about the top three technical analysis tools here:
GBP/AUD Continues Sharp Reversal After Head & Shoulders Fakeout

GBP/AUD Continues Sharp Reversal After Head & Shoulders Fakeout

Christopher Vecchio, CFA, Senior Strategist

Talking Points:

- Australian Dollar selling intensifies overnight; Japanese Yen in pain as well.

- Capital flow still focused on geography – Asian-Pacific suffers more than Western Europe, North America.

- No top line event risk for Wednesday.

To keep up with the European data and news as the week goes forward, be sure to sign up for my distribution list.

Intraday Price Perspective

A scan of this morning’s best and worst performers via the Strong/Weak app shows that the GBPAUD is once again the top performer over the past rolling 24-hours – for the second consecutive day. The GBPAUD has been quite volatile, considering just this past Monday, the GBPAUD was the worst daily performer.

Generally speaking, volatility tends to risk-negative; uncertainty breeds fear. In the case of GBPAUD, higher volatility in the market could translate into a broader shift from higher yielding currencies to lower yielding currencies. But volatility arises at another point in the market: at turns. Indeed, with the GBPAUD trading near multi-year highs and the recent uptrend from November having been broken, longs must be cautious.

GBPAUD_Continues_Sharp_Reversal_After_Head_Shoulders_Fakeout_body_Picture_1.png, GBP/AUD Continues Sharp Reversal After Head & Shoulders Fakeout

Earlier this week, we examined a potential short GBPAUD trade predicated around a breakdown below A$1.8225 (or more conservatively, 1.8160). However, in hindsight what was trade conditions highlighted by low liquidity – Japanese markets were closed for holiday – the ‘V-like’ movement in price suggests that the move lower was a fakeout, not a breakout.

--- Written by Christopher Vecchio, Currency Analyst

To contact Christopher Vecchio, e-mail

Follow him on Twitter at @CVecchioFX

To be added to Christopher’s e-mail distribution list, please fill out this form

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