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.

Free Trading Guides
EUR/USD
Mixed
GBP/USD
Bullish
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
Gold
Bullish
Oil - US Crude
Mixed
Bitcoin
Bearish
More View more
Real Time News
  • $USDJPY has pierced chart support, signaling Yen gains ahead. If that portends a broader anti-risk shift in market sentiment, a breakdown in Japanese stocks may follow. Get your market update from @IlyaSpivak here:https://t.co/sgfv4USOGR https://t.co/rZL6gWsknf
  • RT @economics: Oval Office scuffles, tariff threats, and diminished expectations: An inside look at how Trump’s trade war went from method…
  • We still don't know if there are auto tariffs coming from the White House. The deadline for a decision was Thursday. Crickets
  • $EURUSD Daily Pivot Points: S3: 1.0936 S2: 1.0974 S1: 1.0998 R1: 1.1037 R2: 1.1052 R3: 1.109 https://www.dailyfx.com/pivot-points?ref=SubNav?utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • The $CAD continues to take a hit against the US Dollar after USD/CAD very nearly experienced a major long-term support-break at the end of October. Get your USD/CAD market update from @PaulRobinsonFX here:https://t.co/qeWFmoLwKt https://t.co/G0o4uIV2k7
  • US Yield Curves Update: 2Yr/5Yr: 3.8 2Yr/10Yr: 22.2 2Yr/30Yr: 69.5 5Yr/10Yr: 18.6
  • Forex Update: As of 21:00, these are your best and worst performers based on the London trading schedule: 🇦🇺AUD: 0.51% 🇳🇿NZD: 0.34% 🇪🇺EUR: 0.28% 🇬🇧GBP: 0.17% 🇨🇭CHF: -0.17% 🇯🇵JPY: -0.32% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/Wdqln8EdxW
  • Commodities Update: As of 21:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 0.12% Gold: -0.29% Silver: -0.39% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/JRPr0hEqpC
  • $NZDJPY: The back-and-forth we have seen since the summer bottom could be taking on a large bear-flag, but that won’t be validated until the lower threshold is broken. Get your market update from @PaulRobinsonFX here:https://t.co/xBXm7PWHhn https://t.co/j4JNtpycsU
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.55%, while traders in France 40 are at opposite extremes with 86.01%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/SWn7XmGR9s
US Dollar Selloff Hits Pause as Back-to-Back Dojis Materialize

US Dollar Selloff Hits Pause as Back-to-Back Dojis Materialize

2019-02-21 16:10:00
Christopher Vecchio, CFA, Sr. Currency Strategist
Share:

Talking Points

- The US-China trade negotiations are front-and-center once more, with Chinese Vice Premier Liu He in Washington, D.C. to meet with US Treasury Secretary Steve Mnuchin and US Trade Representative Robert Lighthizer.

- The calamity unfolding in UK parliament may actually be the reason why the British Pound is staying afloat.

- Retail traders are shifting their US Dollar positioning after its weak performance the past few days.

Looking for longer-term forecasts on the US Dollar? Check out the DailyFX Trading Guides.

The US Dollar (via the DXY Index) is treading water for the second straight day, with traders lacking concrete catalysts in the near-term to help divine the next major move. Back-to-back dojis on the daily chart speak to this state of indecision, and the lack of significant economic developments out of the United States this week may be contributing to the state of trance. The greenback appears to be waiting to take cues from other asset classes, as both US equtiy markets and Gold prices are pulling back after their recent extended rallies.

Brexit Latest – Defections Help Buoy Sterling

As the February 26 (UK parliament takes control) and March 29 (UK leaves EU) deadlines approach, the growing number of departures from both the Labour and Tory parties into a new, pro-Remain political party, “The Independent Group,” is a sign that a no deal, “hard Brexit” might be avoided. After all, UK PM Theresa May’s hold on power is proving increasingly tenuous, now that her majority in parliament is down to a skinny eight votes. Paradoxically, the more defections that take place, the greater the likelihood that the UK will have to push back its Brexit deadline and pursue other options, like a general election or second refernedum, instead.

Seventh Round of US-China Trade Talks Begin

The economic calendar has been quiet this week for the US, outside of a few housing market releases and the January FOMC meeting minutes. Stepping into this void is the next round of US-China trade war negotiations taking place in Washington, D.C. Chinese Vice Premier Liu Hi is meeting with US Treasury Secretary Steve Mnuchin and US Trade Representative Robert Lighthizer, and it’s possible that the groundwork is being laid to avoid the early-March deadline.

After all, US President Donald Trump said that the deadline wasn’t “magical,” raising hopes that the negotiation window could be extended without the trade war intensifying. Otherwise, without a deal, the 10% tariff on $200 billion of imported Chinese goods will evolve into a 25% tariff on March 2.

DXY Index Price Chart: Daily Timeframe (June 2018 to February 2019) (Chart 1)

US Dollar Selloff Hits Pause as Back-to-Back Dojis Materialize

After seeing bearish outside engulfing bars develop between last Friday and Tuesday, any near-term bullish view was negated earlier this week. There’s little reason thus far to think that the near-term outlook is anything other than neutral at present time. A doji candle yesterday hinted at the state of indecision, and the inside day doji forming today compounds the state of turbidity. It thus still holds that a return back into the symmetrical triangle (below 96.30 by the end of this week) is necessary to constitute a shift to a fully bearish point of view in the short-term.

Read more: DXY Index’s Bearish Engulfing Bars Weaken Outlook; FOMC Minutes Today

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 at cvecchio@dailyfx.com

Follow him on Twitter at @CVecchioFX

View our long-term forecasts with the DailyFX Trading Guides

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

DISCLOSURES

News & Analysis at your fingertips.