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
  • Further your forex knowledge and gain insights from our expert analysts on EUR with our free guide, available today: https://t.co/XtydfV5wS6 https://t.co/Iw9haaHAnn
  • The Federal Reserve System (the Fed) was founded in 1913 by the United States Congress. The Fed’s actions and policies have a major impact on currency value, affecting many trades involving the US Dollar. Learn more about the Fed here: https://t.co/ADSC4sr63f https://t.co/raO3gCGqQ6
  • Key levels in forex tend to draw attention to traders in the market. These are psychological prices which tie into the human psyche and way of thinking. Learn about psychological levels here: https://t.co/8A1QhwMVKo https://t.co/rWVlBs6H3c
  • The update to the US Consumer Price Index (CPI) is likely to sway the US Dollar during the Federal Reserve’s blackout period as the central bank braces for a transitory rise in inflation. Get your weekly $USD forecast from @DavidJSong here: https://t.co/JTuP7CLlyi https://t.co/tOvqn3Gdpc
  • Becoming a forex trader means living and breathing the excitement, risk and reward of trading in the biggest and most liquid market in the world. Do you have what it takes? Read here to discover the qualities and processes it takes to build consistency: https://t.co/EfWEACQ6Cz https://t.co/s5dn4ZKnku
  • Becoming a forex trader means living and breathing the excitement, risk and reward of trading in the biggest and most liquid market in the world. Do you have what it takes? Read here to discover the qualities and processes it takes to build consistency: https://t.co/EfWEACyvdZ https://t.co/6VjW5FEiQW
  • Global stocks bounce back from recent pullback as key resistance levels lie ahead. Get your weekly equities forecast from @HathornSabin here: https://t.co/wXSWo1JygD https://t.co/vWVaSEQTXT
  • 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/t9FlspUVZz https://t.co/9kfBu04auM
  • Dealing with the fear of missing out – or FOMO – is a highly valuable skill for traders. Not only can FOMO have a negative emotional impact, it can cloud judgment and overshadow logic. Learn how you can control FOMO in your trading here: https://t.co/lgDf5ddzFV https://t.co/8GJ6OQYgnW
  • Bitcoin (BTC) started the day on the front foot on the Twitter news before the latest China crypto ban hammered the market lower. Get your weekly crypto forecast from @nickcawley1 here: https://t.co/ZKHGXeVhsR https://t.co/QSltMQml6N
DXY Index, EUR/USD Inside Day Candlesticks Take Shape

DXY Index, EUR/USD Inside Day Candlesticks Take Shape

Christopher Vecchio, CFA, Senior Strategist

Talking Points:

- A stronger Chinese Yuan fix has helped ease concerns over an immediate response by China as trade tensions with the US rise once more.

- GBP/USD remains pressured as traders eye another crucial Brexit vote in the House of Commons.

- Retail traders have yet to abandon their bearish US Dollar outlook.

Looking to learn more about how central banks impact FX markets? Check out the DailyFX Trading Guides.

The US Dollar (via DXY Index) has failed to break through the weekly highs established yesterday, setting up the development of an inside day candlestick pattern. To little surprise, EUR/USD, as 57.6% of the DXY Index, is also carving out an inside day candlestick.

A quick recall of recent price action helps put these inside day bars in proper context. Inside days are typically viewed as pauses or potential turning points in trends, meaning that the US Dollar's recent bullish run - and the Euro's bearish slide - is entering a critical juncture.

DXY Index Price: Daily Timeframe (July 2017 to June 2018) (Chart 1)

DXY Index, EUR/USD Inside Day Candlesticks Take Shape

The DXY Index continues to contend with 95.17 - the high from the July 20, 2017 bearish outside engulfing bar, as well as the October and November 2017 swing highs. But until a daily close through 95.17 is achieved, traders may be best suited to be a bit more patient approaching new long USD-pair trades; the inside day bar that is forming suggests that recent buy signals issued by MACD and Slow Stochastics may be 'false starts.'

Elsewhere, in light of a rather absent economic calendar for the third day in a row, traders should continue to keep their attention honed in on the news wire (when they're not watching the World Cup). Later today, the British Pound will take the spotlight as the UK's House of Commons will be voting on a bill to determine whether or not Parliament has a say in the Brexit negotations.

Similar to the vote held last week, concerns are afoot that the passage of the amendment would bind UK Prime Minister Theresa May's hands with respect to the negotiations, raising the possibility of a no-deal, or hard Brexit, outcome. The uncertainty around the Brexit negotiations has in turnundercut August BOE rate hike odds, which have fallen to 45% today from their peak of 62% in the first week of June.

Read more: DXY Index Hits Yearly High as China-US Trade Tensions Rise

FX TRADING RESOURCES

Whether you are a new or experienced trader, DailyFX has multiple resources available to help you: an indicator for monitoring trader sentiment; quarterly trading forecasts; analytical and educational webinars held daily; trading guides to help you improve trading performance, and even one for those who are new to FX trading.

--- Written by Christopher Vecchio, CFA, Senior Currency Strategist

To contact Christopher Vecchio, e-mail cvecchio@dailyfx.com

Follow him on Twitter at @CVecchioFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES