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
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
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
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
Mixed
More View more
Real Time News
  • Heads Up:🇬🇧 Markit/CIPS Composite PMI Flash (OCT) due at 08:30 GMT (15min) Expected: 53.9 Previous: 56.5 https://www.dailyfx.com/economic-calendar#2020-10-23
  • Heads Up:🇬🇧 Markit/CIPS UK Services PMI Flash (OCT) due at 08:30 GMT (15min) Expected: 54 Previous: 56.1 https://www.dailyfx.com/economic-calendar#2020-10-23
  • Heads Up:🇬🇧 Markit/CIPS Manufacturing PMI Flash (OCT) due at 08:30 GMT (15min) Expected: 53.1 Previous: 54.1 https://www.dailyfx.com/economic-calendar#2020-10-23
  • 🇵🇱 Unemployment Rate (SEP) Actual: 6.1% Expected: 6.1% Previous: 6.1% https://www.dailyfx.com/economic-calendar#2020-10-23
  • 💶 Markit Manufacturing PMI Flash (OCT) Actual: 54.4 Expected: 53.1 Previous: 53.7 https://www.dailyfx.com/economic-calendar#2020-10-23
  • 💶 Markit Composite PMI Flash (OCT) Actual: 49.4 Expected: 49.3 Previous: 50.4 https://www.dailyfx.com/economic-calendar#2020-10-23
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.62%, while traders in NZD/USD are at opposite extremes with 71.02%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/HNyEZ25b4K
  • Heads Up:💶 Markit Manufacturing PMI Flash (OCT) due at 08:00 GMT (15min) Expected: 53.1 Previous: 53.7 https://www.dailyfx.com/economic-calendar#2020-10-23
  • Heads Up:💶 Markit Composite PMI Flash (OCT) due at 08:00 GMT (15min) Expected: 49.3 Previous: 50.4 https://www.dailyfx.com/economic-calendar#2020-10-23
  • The AB=CD pattern is simple once you know how to spot it and draw the proper Fibonacci retracements. Make your trading strategy as simple as ABCD here: https://t.co/AKmlmaAZBS https://t.co/VYBNrPN7aQ
Charts to Start the Week - EUR/AUD, USD/JPY in Focus

Charts to Start the Week - EUR/AUD, USD/JPY in Focus

2015-06-08 10:25:00
Christopher Vecchio, CFA, Senior Strategist
Share:

Talking Points:

- USDJPY honing in on 161.8% extension of triangle breakout.

- EURAUD looks to retest breakout level before move higher.

- See the DailyFX economic calendar for Monday, June 8, 2015.

There are appealing setups in both EUR-crosses and USD-pairs, even if EURUSD is a bit messy right now. EURUSD is currently being tugged back and forth by rising German yields (the unwind of the ECB's QE trade thanks in part to better inflation data) and improved US economic data (namely the May US labor market report).

As the market seeks resolution for direction in EURUSD, which seems destined for heightened volatility in the short-term, attention and capital may be better fixated in other directions and instruments (and, from a personal trading standpoint, I much prefer to trade trending/momentum markets rather than rangebound choppiness anyway). EURAUD, EURJPY, and USDJPY all immediately come to mind, as they fit that basic criteria - markets that are trending/momentum.

USDJPY's ride along its daily 8-EMA continues, and it's possible before we see one last thrust in the pair up towards ¥126.30, the 161.8% extension of the triangle that saw a breakout on May 19. At that point, with the spot price so far extended from its mean reverting levels and a significant fibonacci level having been achieved, the risk-to-reward of being long USDJPY might no longer be appropriate.

The EUR-crosses mentioned above are far more interesting, as they showed a fair deal of resiliency at the end of last week even as EURUSD fell off thanks to Friday's May US Nonfarm Payrolls report. EURJPY may be working on an inverted head & shoulders or cup and handle pattern; in either case, price has been consolidating after breaking through resistance dating back to January. EURAUD is more compelling, having just recently established a base in a falling wedge breakout.

See the above video for technical considerations in EURUSD, EURAUD, EURJPY, USDJPY, AUDUSD, and the USDOLLAR Index.

Read more: EUR/USD at Risk as Significant Short Covering Has Passed

--- 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