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
GBP/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
More View more
Real Time News
  • Heads Up:🇨🇳 Industrial Profits (YTD) YoY (AUG) due at 01:30 GMT (15min) Previous: 57.3% https://www.dailyfx.com/economic-calendar#2021-09-27
  • RT @FxWestwater: Australian Dollar Forecast: $AUDUSD Action May Swing on Chinese Industrial Profits Link: https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/asia_am_briefing/2021/09/26/Australian-Dollar-Forecast-AUDUSD-Action-May-Swing-on-Chinese-Industrial-Profits.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Westwater&utm_campaign=twr https://…
  • Central banks often deem it necessary to intervene in the foreign exchange market to protect the value of their national currency. Learn how central bank intervention can impact your trading here: https://t.co/8G8mUX4so6 https://t.co/YTdM3KVtUk
  • The Consumer Price Index, better known by the acronym CPI, is an important economic indicator released on a regular basis by major economies to give a timely glimpse into current growth and inflation levels. Learn how to better understand CPI here: https://t.co/nAa0fHHGbZ https://t.co/Bnih4YvTdg
  • *Reminder: Weekly Strategy Webinar tomorrow morning at 8:30am ET on DailyFX! https://t.co/lxd5fZ5LG7
  • (Weekly Fundy) Crude Oil May Rise as Covid Case Growth Slows. WTI Eyes OPEC Outlook, Evergrande #CrudeOil #WTI #OPEC #Evergrande https://www.dailyfx.com/forex/fundamental/forecast/weekly/title/2021/09/26/Crude-Oil-May-Rise-as-Covid-Case-Growth-Slows-WTI-Eyes-OPEC-Outlook-Evergrande.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/76e2aGf3p0
  • Recessions can devastate the economy and disrupt the fortunes of individuals, businesses, and investors. But economic decline in the business cycle is inevitable, and your trading can be defined by how you respond to crisis. learn how to prepare here: https://t.co/e4Cnoc1dk0 https://t.co/NhsMS1EY4b
  • We are heading into the final trading days for the month of September and event risk thins out amid the $SPX's rebound. This is what history says for the 39th week of the year and here is my take on the variable factors: https://www.dailyfx.com/forex/video/daily_news_report/2021/09/25/SP-500-and-Dollar-Have-Different-Views-for-Last-Week-of-September.html https://t.co/4OBVmrvI7I
  • Further your forex knowledge and gain insights from our expert analysts on AUD with our free guide, available today: https://www.dailyfx.com/free-trading-guides?ref-author=social#forecastschoices=AUD?QPID=30472&CHID=9 https://t.co/LHJi7CNFmM
  • $EURUSD https://t.co/KZyXX6p2oI
US Dollar Slide Looks to Continue amid Key Technical Developments

US Dollar Slide Looks to Continue amid Key Technical Developments

Christopher Vecchio, CFA, Senior Strategist

Talking Points:

- After gaining for six straight days, the DXY Index lost ground yesterday and is looking at its second consecutive loss today.

- Failure by the DXY Index to get back above 91.01 suggests that more pain may be ahead.

- Retail trader sentiment suggests a weak trading environment for the US Dollar through the end of the week.

Upcoming Webinars for Week of February 18 to 23, 2018

Monday at 7:30 EST/12:30 GMT: FX Week Ahead: Strategy for Major Event Risk

Wednesday at 6:00 EST/11:00 GMT: Mid-Week Trading Q&A

Thursday at 7:30 EST/12:30 GMT: Central Bank Weekly

Volatility is back. It's time to review the Traits of Successful Traders series to stay grounded with the tenets of risk management.

In recent days, a good deal of focus has been on the US Dollar's attempt to climb out of its downtrend. However, given growing fiscal concerns and evidence of a regime change in markets, we've cautioned that it's still too early to call a bottom in the greenback. More evidence has emerged that the US Dollar may still have weakness ahead.

Ignoring the fundamentals for the moment - which have clearly turned against the buck - the technical picture for the DXY Index, as well as several USD-pairs, remains rather bearish.

Price Chart 1: DXY, AUD/USD, EUR/USD, & GBP/USD Daily Timeframe (2018 YTD)

US Dollar Slide Looks to Continue amid Key Technical Developments

For the DXY Index, price is now back below its daily 8-, 13-, and 21-EMAs. Daily MACD and Slow Stochastics have started to pinch and turn lower. A reading of the candlesticks from yesterday likewise reveals signs USD-bearish momentum is picking up:

- Bearish outside piercing bar: DXY, USD/CHF, and USD/JPY

- Bearish outside engulfing bar: USD/CAD

- Bullish outside engulfing bar: AUD/USD, EUR/USD, GBP/USD, NZD/USD

These candles offer clear, defined levels of risk for traders. Ultimately, however, the key level traders need to watch out for in the DXY Index before a sincere bottom can be called is thus 91.01. The DXY Index put in its 2017 bottom at 91.01 on September 8, and since breaking through said level on January 12, price hasn't looked back. Yesterday's price action does little to suggest that the bottom is coming any time soon.

In an environment where volatility has picked up, it is absolutely imperative that traders adjust their risk management perspective. If you haven't yet, it's the right time to review the Traits of Successful Traders series in order to become reacquainted with the tenets of risk management.

Read more: US Dollar Bounces, but Hasn’t Bottomed Yet - Key Levels

--- 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