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
More View more
Real Time News
  • Vietnam says Q3 GDP lowest level since calculations started - BBG
  • Traders utilize varying time frames to speculate in the forex market. The two most common are long- and short-term-time frames which transmits through to trend and trigger charts. Learn more about time-frame analysis here: https://t.co/9S5tXIs3SX https://t.co/eKemHgd2xD
  • House Committee on Rules to meet Wednesday at 10 am ET to advance debt limit extension - BBG
  • Japan's government pension investment fund (GPIF) will not include Chinese sovereign debt in portfolio Nikkei via BBG
  • The US Dollar continues to push higher against ASEAN currencies after the FOMC rate decision. This leaves the USD/SGD, USD/THB, USD/PHP and USD/IDR outlook mostly tilted higher.Find out from @ddubrovskyFX here:https://t.co/zn56iTFBxM https://t.co/bzCqq5pKdY
  • China's Evergrande Group reported to sell stake in its regional bank for near $1.5 billion - BBG
  • Update on #Cryptocurrencies #BITCOIN -1.84% #BITCOINCASH -2.03% #ETHEREUM -1.84% #RIPPLE -2.13% #LITECOIN -2.44%
  • Will be covering the Japanese #Yen to see how retail positioning could shape the outlook for $USDJPY, $AUDJPY and $EURJPY Starting in about 30 minutes! Signup for the session below: https://t.co/afqne77wU6
  • Join @ddubrovskyFX at 20:00 EST/00:00 GMT for a webinar on what other traders' buy/sell bets say about price trends. Register here: https://t.co/AzOQioRZER https://t.co/h2DAnqnY7J
  • #BlackRock: We are neutral U.S. equities. We see U.S. growth momentum peaking and expect other regions to be attractive ways to play the next leg of the restart as it broadens to other regions, notably Europe and Japan $SPX $NDX
Breakout on Tap Next Week? USDOLLAR Index Eyes Flag Top

Breakout on Tap Next Week? USDOLLAR Index Eyes Flag Top

Christopher Vecchio, CFA, Senior Strategist

Talking Points:

- EURUSD rebounds back above $1.0980 on EZ CPI data.

- AUDUSD at fresh yearly lows; USDCAD waits for Canadian GDP.

- See the DailyFX economic calendar for Friday, July 31, 2015.

It's the end of the month, which means fund managers and traders alike will be revisting their books. This rebalancing effect - the reallocation of capital across asset classes based on relative over/underperformance - tends to have a profound impact on FX markets as light hedging is sought or profit taking is undertaken.

Accordingly, the bull flag that has formed in the USDOLLAR Index may need to wait a few days before commencing - even as price action the past two days has been constructive within the consolidation, and the range top has come into focus.

The current consolidation in the USDOLLAR Index since July 15 is being viewed as a bull flag in context of the break of the downtrend from the April and June swing highs. With H4 indicators returning to bullish territory (daily and weekly Stoch and MACD already in positive territory), momentum may start to gather pace (we what call "full timeframe continuity") should recent swing highs near 12063 give way; risk should be contained just below recent range lows near 11977.

The alternative outcome (the main one we're considering given current information, amid a nuanced set of possible future outcomes) would be for a double/triple top forming against 12063 with a break under 11977. In that case, the measured move would point towards 11891. which would result in a retest of former trendline resistance off of the April and June swing highs.

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

Read more: USDOLLAR Index Consolidates in Bull Flag Post-FOMC

--- 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