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.

Free Trading Guides
EUR/USD
Bearish
Oil - US Crude
Mixed
Wall Street
Bullish
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
Gold
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
GBP/USD
Mixed
USD/JPY
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
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.09%, while traders in US 500 are at opposite extremes with 75.23%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/NqGfEOph43
  • S&P 500 Surges as VIX 'Fear-Gauge' Implodes Post-Jobs Report (via @DailyFX) $ES_F $SPX $SPY $VIX #Stocks #StockMarket #Trading #Analysis #Volatility #NFP https://t.co/laVWdqMgDG
  • Indices Update: As of 20:00, these are your best and worst performers based on the London trading schedule: Wall Street: 0.05% US 500: 0.03% FTSE 100: -0.48% France 40: -0.51% Germany 30: -0.61% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/k8WwORiUth
  • US COVID-19 cases increase at 1.2%, same as previous week's average - BBG
  • The price of #gold has traded to fresh yearly highs during every single month so far in 2020, and the precious metal may continue to exhibit a bullish behavior in June. Get your $XAUUSD market update from @DavidJSong here: https://t.co/OeaYtCpcIo https://t.co/wFVEtNsKiN
  • Are recent gains in the Indian Rupee and Nifty 50 warranted? Risks are brewing in the background, leaving USD/INR in a consolidative setting as the Nifty pressures resistance. Get your $USDINR market update from @ddubrovskyFX here:https://t.co/svDaSdprvN https://t.co/jtl19JX4Bd
  • With the risk appetite charge this week and the particular performance from US indices, I wanted to overlay US GDP (annualized) over the Log scale of the Wilshire 5000 (Fed doesn't have Dow/SPX back far enough) to show fundamentals are not steering this boat https://t.co/bXtc7nSCQq
  • 🇺🇸 Consumer Credit Change Actual: $-68.78B Expected: $-20B Previous: $-12.1B https://www.dailyfx.com/economic-calendar#2020-06-05
  • Nasdaq 100 Sets Fresh All-Time-Highs, US Stocks Jump on Jobs Report https://www.dailyfx.com/forex/fundamental/daily_briefing/session_briefing/daily_fundamentals/2020/06/05/Nasdaq-100-Sets-Fresh-All-Time-JS-High-US-Stocks-Jump-on-Strong-Jobs-Report.html https://t.co/SKiFAIEgMa
  • #Nasdaq: The market rising vertically into the top-side line and it also roughly matching the psychological 10k threshold (10100/200), we have the perfect recipe for a significant inflection point. Get your Nasdaq market update from @PaulRobinsonFX here: https://t.co/e248c13kKI https://t.co/g0nllIycxl
GBP/USD Shows Resiliency in Range; EUR/GBP, GBP/CAD Due to Follow?

GBP/USD Shows Resiliency in Range; EUR/GBP, GBP/CAD Due to Follow?

2015-02-04 12:12:00
Christopher Vecchio, CFA, Senior Strategist
Share:

Talking Points:

- USDOLLAR Index holding 11713/746 support region.

- GBPUSD stabilizes, EURGBP fails at resistance...a 'tell?'

- See the February Forex Seasonality report and the implications for the majors.

On balance, several of the more liquid currency pairs have made little progression up or down over the past week, but that doesn't mean volatility hasn't been present. Choppy ranges may have been persisting, although it appears we may be coming close to a 'decision moment' in several pairs that we've been tracking through the start of the year.

To start, the USDOLLAR Index has shown signs of abating in its seven-month long bull trend, and it's worth noting that its four-week/daily 21-EMA has now risen into a crucial zone of support that was carved out with highs and lows forming going back to the start of January. A dissection of the index is important to see which are the moving parts, and which are simply being pushed along by the general direction the buck is moving in.

While much attention has been drawn to EURUSD, perhaps its best that we turn our focus to GBPUSD. GBPUSD has not only been at the behest of broader capital flows around bond market speculation and the ECB's QE, but also its own metrics of declining interest rate expectations: the market has pushed back the timing of the first BoE rate hike to at least H1'16, if not later.

Nevertheless, GBPUSD continues to show resiliency within its range carved out over the past five weeks, and may possibly face a significant test of its daily 34-EMA, which has capped price going back to late-July (with numerous tests in between). When we look around the GBP-spectrum, there is evidence mounting that Sterling may be searching for some footing - which, if is the case, then they may be early opportunities in two instruments we've already been engaged with this year, EURGBP and GBPCAD.

Beyond the short-term signs of nascent British Pound strength, a focus on what AUDUSD does over the next day or so is worthwhile. Overnight AUDUSD found resistance at a particularly interesting level (0.7850), the January 23 high as well as the daily 8-EMA. The daily 8-EMA has served as resistance twice recently, on January 22 and January 28. If this downtrend is to persist, now would be the ideal time for the next swing lower.

See the above video for technical considerations in EURUSD, GBPUSD, EURGBP, GBPCAD, and AUDUSD.

Read more: RBA Surprises, but Choppy Conditions Persisting in USD-Majors

--- 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

News & Analysis at your fingertips.