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
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
Oil - US Crude
Bullish
Wall Street
Bearish
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
Bearish
USD/JPY
Mixed
More View more
Real Time News
  • Human error in the forex market is common and often leads to familiar trading mistakes. These trading mistakes crop up particularly with novice traders on a regular basis. Learn about the top ten trading mistakes and how you can avoid them here: https://t.co/i8E2AXtzF3 https://t.co/cDcjl3Ue09
  • 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/KWOX5wSipe
  • What is your forex trading style? Take the quiz and find out: https://t.co/YY3ePTpzSI https://t.co/cwSWCpKtaj
  • Japanese candlesticks are a popular charting technique used by many traders, and the shooting star candle is no exception. Learn about the shooting star candlestick and how to trade it here: https://t.co/mfwJ0sZLTs https://t.co/zu5hMovbz6
  • Knowing how to accurately value a stock enables traders to identify and take advantage of opportunities in the stock market. Find out the difference between a stock's market and intrinsic value, and the importance of the two here: https://t.co/QszmdZFxlk https://t.co/QMKyTBOKNG
  • Currency exchange rates are impacted by several factors. Are different world leaders a contributing factor? Find out here: https://t.co/4jsORznRTE https://t.co/aRkGoNvj6D
  • Do you know how to properly Identify a double top formation? Double tops can enhance technical analysis when trading both forex or stocks, making the pattern highly versatile in nature. Learn more about the double top formation here: https://t.co/t9Flsqcxo9 https://t.co/ltVTNO2sjT
  • GBP/USD clears the May low (1.3801) as the Federal Reserve forecasts two rate hikes for 2023. Get your $GBP market update from @DavidJSong here:https://t.co/WdTG2niAKz https://t.co/2j02VyH0wm
  • Forex Update: As of 20:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: 0.01% 🇪🇺EUR: -0.36% 🇨🇭CHF: -0.60% 🇨🇦CAD: -0.91% 🇦🇺AUD: -0.96% 🇳🇿NZD: -1.07% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/HWVSmqaiYF
  • The amount of breakouts the #USD saw against its major peers this week was fairly impressive Lots of opportunities here for reversing dominant downtrends that have been prevailing for about 14-15 months Stay tuned for my USD weekly technical outlook coming out this weekend!
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