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
EUR/USD
Mixed
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
Oil - US Crude
Mixed
Wall Street
Bearish
Gold
Mixed
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
GBP/USD
Mixed
USD/JPY
Bullish
More View more
Real Time News
  • ...I could probably stay on the CCR catalogue to represent various possible outcomes from the Fed. I Heard It Through the Grapevine, Who'll Stop the Rain, I Put a Spell On You, Fortunate Son...
  • What's on your pre-FOMC music playlist today? Not even thinking about it, I seem to have started with Bad Moon Rising by CCR
  • Commodities Update: As of 14:00, these are your best and worst performers based on the London trading schedule: Silver: 0.24% Oil - US Crude: 0.23% Gold: -0.14% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/3Tp9rWTsbv
  • Please join @PeterHanksFX at 11:00 EST/15:00 GMT for your weekly stock market outlook webinar. Register here: https://t.co/nqJWK4f4sl https://t.co/LwPW7D7TiU
  • IG Client Sentiment Update: Our data shows the vast majority of traders in USD/CHF are long at 75.61%, while traders in France 40 are at opposite extremes with 75.25%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/FOhGNQvQGC
  • RT @NYFedResearch: The latest Supplemental Survey Report asks firms about their post-pandemic outlook: how sales compare to normal pre-pand…
  • Commodities Update: As of 13:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 0.36% Silver: 0.29% Gold: -0.10% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/ELIb53GJTu
  • Indices Update: As of 13:00, these are your best and worst performers based on the London trading schedule: FTSE 100: 0.22% France 40: 0.15% US 500: 0.04% Wall Street: -0.03% Germany 30: -0.04% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/FPJs0yOWtC
  • LIVE NOW: Join Technical Strategist @MBForex for his Mid-Week Market Update to review the setups we're tracking into today's #Fed Decision! - https://t.co/NG58yc4oIJ
  • The Federal Reserve meeting will be the highlight of the day and week, marking the last chance for some FX volatility before the summer lull kicks in. Get your market update from @JMcQueenFX here:https://t.co/f7a2r3Xupz https://t.co/dPqOnqGa6v
Next EUR/USD Leg Lower Begins; Trade Opportunities in EUR/AUD, EUR/GBP

Next EUR/USD Leg Lower Begins; Trade Opportunities in EUR/AUD, EUR/GBP

Christopher Vecchio, CFA, Senior Strategist

Talking Points:

- EURUSD cracks weekly low and tumbles below $1.2600.

- New EURGBP trade on the table.

- EURUSD has been on a major losing streak since mid-August.

Euro-Zone economic data came out roundly weaker than expected today, and the aftershocks have been felt throughout EUR-complex. The depth of impact stemming from the disappointing preliminary September Euro-Zone CPI may have to do with expectations for the core: +0.9% y/y was expected when +0.7% y/y was delivered. The scope of disinflation widens.

Over the next few months, Euro-Zone CPI may start to bottom. For starters, if it takes three to nine months for changes in interest rates and exchange rates to impact an economy, then the EURUSD peak in early-May is a good watermark to look back at; the window for peak drag on CPI by FX is just about now.

We maintain the intraweek chart perspective on EURUSD as such: the daily 13-EMA is our trend resistance and a break above that level (wherever it may be that day) will mark a change in the nature of price action. We're also looking at short EURGBP based on H4 technicals and a longer-term long EURAUD trade. See the video above for technical considerations.

Read more: Technical Case for Weak EUR/USD Persists - Will Fundamentals Match?

--- Written by Christopher Vecchio, Currency Strategist

To contact Christopher Vecchio, e-mail cvecchio@dailyfx.com

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.

DISCLOSURES