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
Mixed
Oil - US Crude
Bullish
Wall Street
Bearish
Gold
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
GBP/USD
Bearish
USD/JPY
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
More View more
Real Time News
  • Has Bitcoin Bottomed? PTJ Makes Crypto Bull Case (Again) https://www.dailyfx.com/forex/fundamental/daily_briefing/session_briefing/daily_fundamentals/2021/06/14/has-bitcoin-btc-btcusd-bottomed-ptj-makes-bull-case.html #BTC https://t.co/5AVns1VChh
  • Commodities Update: As of 16:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 0.34% Silver: 0.10% Gold: -0.72% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/Pd49xggkDe
  • Gold prices put in a major breakout last month, and so far buyers have been able to hold the bullish trend. Get your $XAUUSD market update from @JStanleyFX here:https://t.co/NGRTSfceOW https://t.co/WeYD451eCw
  • Forex Update: As of 16:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.23% 🇨🇦CAD: 0.17% 🇪🇺EUR: 0.14% 🇬🇧GBP: 0.03% 🇨🇭CHF: -0.13% 🇯🇵JPY: -0.29% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/18JsQysBpm
  • Indices Update: As of 16:00, these are your best and worst performers based on the London trading schedule: Germany 30: -0.10% France 40: -0.12% FTSE 100: -0.15% US 500: -0.21% Wall Street: -0.62% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/11CO324Vg7
  • May consumer inflation expectations for the medium term climb to 4% from 3.4% in April.Get your market update from @DColmanFX here:https://t.co/Dsa5Sxn0fU https://t.co/oGStoYQ8qq
  • Heads Up:🇧🇷 Business Confidence (JUN) due at 16:00 GMT (15min) Previous: 58.5 https://www.dailyfx.com/economic-calendar#2021-06-14
  • Technical Levels: #Dollar, #Sterling, #Loonie, #Gold, #Bitcoin, #Oil and more! (Webinar Archive) - https://t.co/0ztuS6u8z7
  • Poll: With volatility deflating across the financial system, left to wonder what phase of the market cycle we are in currently. What stage do you think we are in right now? (https://www.dailyfx.com/forex/fundamental/article/special_report/2019/02/05/Market-cycle-phases.html)
  • Forex Update: As of 14:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.28% 🇦🇺AUD: 0.20% 🇨🇦CAD: 0.19% 🇬🇧GBP: 0.01% 🇨🇭CHF: -0.11% 🇯🇵JPY: -0.24% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/rKGivnA7az
US Dollar Breakout Potential Persists Before Calendar Heats Up

US Dollar Breakout Potential Persists Before Calendar Heats Up

Christopher Vecchio, CFA, Senior Strategist

Talking Points:

- DXY Index is maintaining its ground above the descending trendline from the April, May, and June highs, as US Treasury yields have pushed higher.

- USD/CHF and USD/JPY still represent some of the best opportunities for bullish US Dollar outcomes.

- Retail trader sentiment continues to shift in a way that suggest USD-pairs have turned higher.

Upcoming Webinars for Week of October 1 to October 6, 2017

Wednesday at 6:00 EDT/10:00 GMT: Mid-Week Trading Q&A

Thursday at 7:30 EDT/11:30 GMT: Central Bank Weekly

See the full DailyFX Webinar Calendar for other upcoming strategy sessions

The US Dollar is taking a breather today, having given up gains accumulated overnight. Yet after yesterday's strong performance, the DXY Index finds itself trading above the descending trendline from the April, May, and June highs, suggesting that the downtrend over the past six months has come to an end.

While there aren't any catalysts on the US economic calendar today for the US Dollar - literally, zero data releases - the next few days will reveal a few key pieces of information that will likely bring volatility back to markets. The US ISM Non-Manufacturing/Services report for September, alongside the US ADP Employment report for September, will yield a fairly important insight as to where the upcoming US Nonfarm Payrolls report on Friday will go.

Taking a look at individual pairs, move higher in DXY Index yesterday appears to be largely driven by EUR/USD, which was impacted as new negative political risk drivers - for the first time since April - appeared on the scene in form of the Catalonian independence referendum.

In true head & shoulders fashion, price action has turned EUR/USD away from its former neckline, as is typical after the first breakout move. A close below 1.1715 would suggest increased validity for the EUR/USD head & shoulders target of 1.1554.

It remains the case that the best place right now to look for US Dollar strength are against the low yielding, safe haven currencies: the Japanese Yen and the Swiss franc. Both USD/CHF and USD/JPY have showed heightened sensitivty to US Treasury yield moves over the past five weeks, with both pairs bottoming within a day of the US Treasury 10-year yield hitting its low last month.

USD/CHF's rally continues to find resistance in the 0.9730/70 area, where the range top from May and the declining trendline from the December 2016, March 2017, and April 2017 highs converge. Yet like USD/JPY, USD/CHF is finding support on the daily 8-, 13- 21-EMA envelope; bullish momentum remains strong.

Now that the US Treasury 2-year yield is at its highest level of the year, and the US Treasury 10-year yield is at its highest level in two and a half months, both USD/CHF's and USD/JPY's attempts to run higher should be well-supported.

See the above video for a technical review of the DXY Index, EUR/USD, GBP/USD, USD/JPY, AUD/USD, USD/CHF, Gold, and US yields.

Read more: FX Markets Look to RBA Rate Decision on Tuesday, US NFPs on Friday

--- Written by Christopher Vecchio, CFA, Senior 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