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.

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
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
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
Wall Street
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
Gold
Bearish
GBP/USD
Bullish
USD/JPY
Bearish
More View more
Real Time News
  • Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Learn about FX leverage here: https://t.co/BdgFmkzWwW https://t.co/9j004hyzUZ
  • Learning how to trade does not have to feel foreign. Hone your skills and build your confidence with free DailyFX guides today! https://t.co/lnxaQOsgid https://t.co/7myL4vGnt8
  • Using margin in forex trading is a new concept for many traders, and one that is often misunderstood. Margin is the minimum amount of money required to place a leveraged trade and can be a useful risk management tool. Learn about margin trading here: https://t.co/qZCE5asCzM https://t.co/yxE0OmLIP0
  • Entry orders are a valuable tool in forex trading. Traders can strategize to come up with a great trading plan, but if they can’t execute that plan effectively, all their hard work might as well be thrown out. Learn how to place entry orders here: https://t.co/1mnOXUd00T https://t.co/iSrjZTeWwf
  • There are many different types of forex orders, which traders use to manage their trades. While these may vary between different brokers, there tends to be several basic FX order types all brokers accept. Learn about different FX order types here: https://t.co/WeLInepZiD https://t.co/7B0KI8HehW
  • GDP (Gross Domestic Product) economic data is deemed highly significant in the forex market. GDP figures are used as an indicator by fundamentalists to gauge the overall health and potential growth of a country. Learn use GDP data to your advantage here: https://t.co/Yl9vM73cHA https://t.co/vGW5BygTXU
  • When it comes to buying and selling forex, traders have unique styles and approaches. Learn about buying and selling forex here: https://t.co/xngExEdFdu https://t.co/kqpJ6oGXgt
  • Traders utilize varying time frames to speculate in the forex market. The two most common are long- and short-term-time frames which transmits through to trend and trigger charts. Learn more about time-frame analysis here: https://t.co/F4dXbUzU3o https://t.co/G0ZWWVtSrZ
  • Risk management is one of the most important aspects of successful trading, but is often overlooked. What are some basic principles or risk management? Find out from @PaulRobinsonFX here: https://t.co/IsnpfIZNKr https://t.co/5js6tWk5bY
  • The Euro has regained lost ground against its major counterparts recently. Are further gains in the offing or is this just a short-term countertrend correction? EUR/USD, EUR/JPY, EUR/GBP, EUR/NZD key levels. Get your market update from @DanielGMoss here:https://t.co/Z71MZEIJWC https://t.co/YAr1kN4eKd
Strong U.S. Durable Goods Orders to Foster EUR/USD Losses

Strong U.S. Durable Goods Orders to Foster EUR/USD Losses

David Song, Strategist

- U.S. Durable Goods Orders to Increase for Second Straight Month in April.

- Non-Defense Capital Goods Orders ex. Aircrafts to Rise for First Time Since September.

For more updates, sign up for David's e-mail distribution list.

Trading the News: U.S. Durable Goods Orders

Another 0.5% expansion in orders for U.S. Durable Goods may heighten the appeal of the greenback and spur a near-term decline in EUR/USD as it puts increased pressure on the Federal Open Market Committee (FOMC) to further normalize monetary policy.

What’s Expected:

DailyFX Calendar

Click Here for the DailyFX Calendar

Why Is This Event Important:Even though Fed Chair Janet Yellen remains in no rush to implement higher borrowing-costs, we may see a greater dissent at the next quarterly meeting in June as a growing number of central bank officials see the U.S. economy approaching ‘full-employment.’

Expectations: Bullish Argument/Scenario

Release

Expected

Actual

U. of Michigan Confidence (MAY P)

89.5

95.8

Consumer Credit (MAR)

$16.000B

$29.674B

Average Hourly Earnings (YoY) (APR)

2.4%

2.5%

The pickup in household earnings accompanied by the ongoing expansion in private-sector credit may boost demand for large-ticket items, and a positive development may spark a bullish reaction in the greenback as it fuels interest-rate expectations.

Risk: Bearish Argument/Scenario

Release

Expected

Actual

Consumer Price Index ex Food & Energy (YoY) (APR)

2.1%

2.1%

Non-Farm Payrolls (APR)

200K

160K

Gross Domestic Product (Annualized) (1Q A)

0.7%

0.5%

However, sticky price growth paired with fears of a slower recovery may drag on private consumption, and a dismal report may drag on the dollar as it dampens speculation for an imminent Fed rate-hike.

How To Trade This Event Risk(Video)

Bullish USD Trade: Demand for Large-Ticket Items Increase 0.5% or Greater

  • Need red, five-minute candle following the rate decision to consider a short EUR/USD position.
  • If market reaction favors a bullish dollar trade, sell EUR/USD with two separate position.
  • Set stop at the near-by swing high/reasonable distance from cost; at least 1:1 risk-to-reward.
  • Move stop to entry on remaining position once initial target is met, set reasonable limit.

Bearish USD Trade: Durable Goods Orders Report Disappoints

  • Need green, five-minute candle to favor a long EUR/USD trade.
  • Implement same strategy as the bullish dollar trade, just in the opposite direction.

Potential Price Targets For The Release

EURUSD Daily

EUR/USD Daily Chart

Chart - Created Using FXCM Marketscope 2.0

  • EUR/USD may continue to give back the advance from earlier this year following the failed attempt to test the August high (1.1713), while the Relative Strength Index (RSI) largely fails to preserve the bullish formation carried over from the previous year.
  • Interim Resistance: 1.1760 (61.8% retracement) to 1.1810 (38.2% retracement)
  • Interim Support: Interim Support: 1.0380 (78.6% expansion) to 1.0410 (61.8% expansion)

Avoid the pitfalls of trading by steering clear of classic mistakes. Review these principles in the "Traits of Successful Traders" series.

Impact the U.S. Durable Goods Orders report has had on EUR/USD during the last release

Period

Data Released

Estimate

Actual

Pips Change

(1 Hour post event )

Pips Change

(End of Day post event)

MAR

2016

04/26/2016 12:30 GMT

1.9%

0.8%

+47

+11

March 2016 U.S. Durable Goods Orders

EUR/USD Chart

Demand for U.S. Durable Goods increased 0.8% in March after contracting a revised 3.1% the month prior, while Non-Defense Capital Goods Orders excluding Aircrafts, a proxy for future business investment, climbed 0.3% amid forecasts for a 0.9% print. Despite expectations for a ‘consumer-led’ recovery in 2016, the ongoing weakness in private-sector consumption may prompt the Federal Open Market Committee (FOMC) to further delay its normalization cycle in an effort to mitigate the downside risks surrounding the real economy. The dollar struggled to hold its ground following the weaker-than-expected print, with EURUSD climbing above the 1.1300 handle, but the market reaction was short-lived as the pair closed the day at 1.1294.

Get our top trading opportunities of 2016 HERE

Check out FXCM’s Forex Trading Contest

Read More:

EUR/JPY Technical Analysis: Prior Support, New Resistance

US DOLLAR Technical Analysis: A Fitting Finish To May

USD/JPY Technical Analysis: Clearly Defined Support & Resistance To Help Traders

GBP/USD Successful Re-Test of Former Resistance Line

--- Written by David Song, Currency Analyst

To contact David, e-mail dsong@dailyfx.com. Follow me on Twitter at @DavidJSong.

To be added to David's e-mail distribution list, please follow this link.

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

DISCLOSURES