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
Wall Street
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
  • Trading Forex is not a shortcut to instant wealth, excessive leverage can magnify losses, and sentiment is a powerful indicator. Learn about these principles in depth here: https://t.co/lZFM8youtX https://t.co/Xja8DHUqlH
  • Risk management is one of the most important aspects of successful trading, but is often overlooked. What are some basic principles or risk management? Find out from @PaulRobinsonFX here: https://t.co/IsnpfJhp91 https://t.co/9po5Lg4vnR
  • The Japanese Yen is eyeing the upcoming Bank of Japan rate decision and CPI figures, but JPY crosses will likely remain dependent on broader market sentiment. Get your weekly $JPY forecast from @FxWestwater here: https://t.co/x9rbQpPfWe https://t.co/2x1R5XTVea
  • 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/uCaWQiu4Ly
  • Crude and Brent oil are on track to extend higher as Gulf Coast supply disruptions and a positive OPEC report bolster sentiment. Uranium is on a massive surge, aided by the famous Wall Street Bets group. Get your market update from @FxWestwater here:https://t.co/XrpV0jcy8e https://t.co/g2To3LmUah
  • RT @michaeljburry: Read thread.
  • The Australian Dollar has retraced from August lows when looking at AUD/JPY and AUD/CAD. However, the AUD/NZD downtrend is intact, will a reversal there appear as well? Find out: https://t.co/8LmgqLLGJO https://t.co/AueigVsuk4
  • The S&P 500, Dow Jones and DAX 30 could be at risk of falling as retail traders continue increasing their upside exposure in these indices. What are the key technical levels to watch for? Find out from @ddubrovskyFX here:https://t.co/OJByiwIppr https://t.co/P1iOONG90N
  • The US Dollar continues to hold its ground against most ASEAN currencies as recent downtrends lose momentum. What is the road ahead for USD/SGD, USD/THB, USD/PHP and USD/IDR? Find out from @ddubrovskyFX here:https://t.co/UcleaZEAaW https://t.co/62bGLvt8fE
  • The Canadian Dollar has been caught in broad ranges against the Euro and the US Dollar, but can the upside bias in USD/CAD and EUR/CAD prolong? Find out here:https://t.co/8DubboXsjv https://t.co/A0sIYo2iP1
FX Markets Coil in Anticipation of June FOMC Meeting

FX Markets Coil in Anticipation of June FOMC Meeting

Christopher Vecchio, CFA, Senior Strategist

Talking Points:

- EURUSD remains in symmetrical triangles.

- USDJPY holding below ¥123.70/90 resistance zone.

- See the June forex seasonality report.

Absent concrete developments out of Greece, FX markets are starting to get ready for this week's scheduled fireworks. Those fireworks are the June FOMC meeting, of course, and market participants are evidently split on which way policymakers will break. There's either enough improved data in Q2'15 to declare that the slowdown in Q1'15 was transitory, or there's not and the probability of a rate hike this year is low.

In either case, the market seems primed for an explosive move, with several USD-pairs sitting at important technical levels that could determine the viability of breakout attempts. EURUSD is a particularly curious case, where price has constricted itself into two symmetrical triangles.

Given the growing threat of a tail-risk event revolving around Greece, and the possibility that the Fed takes on a more optimistic tone about the US economy, one can't help but feel that the massive reduction in Euro short positioning in the futures market (there were 138.0K net-short contracts held by speculators for the week ended June 9, nearly half of the level at the all-time high on March 31, at 226.6K net-short contracts) means that there's a considerable amount of cash on the sidelines that could come into play to dictate a major swing in price.

See the above video for technical considerations in EURUSD, GBPUSD, USDJPY, and the USDOLLAR Index.

Read more: Euro, US Dollar Ebb as Traders Await Greek News, FOMC Meeting

--- 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