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
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
GBP/USD
Mixed
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
  • The continuity seen across these volatility cycles is a good thing. Historical precedence offer a blueprint for identifying conditions supportive for a vol-event to occur, and how they may unfold. Deepen your knowledge of historical volatility here: https://t.co/vg7w10la3j https://t.co/POsnWwTmER
  • Speculative stubbornness continues to hold back emergent fears like inflation and central bank moderation, but no certain of progress on that battle this week. While $NDX, $BTCUSD and Pound are on my radar, #Dollar tops my watch list: https://www.dailyfx.com/forex/video/daily_news_report/2021/05/15/Dollar-Outlook-Throttled-by-Both-Risk-Rebound-and-Curbed-Inflation-Concerns.html https://t.co/aYjyvQzhIA
  • AUD/USD remains range-bound but trend potential exists elsewhere in pairs such as AUD/JPY or AUD/CAD. Get your market update from @JStanleyFX here: https://t.co/bppORO1NEg https://t.co/6mXqAOrl9H
  • What are some technical and fundamental factors affecting the equities market? Get your free forecast here: https://t.co/YQG1aaIT8C #DailyFXGuides https://t.co/oOyN7fUaC6
  • The Federal Open Market Committee (FOMC) Minutes may drag on the price of gold as the central bank appears to be in no rush to switch gears. Get your market update from @DavidJSong here: https://t.co/2EvNplObIk https://t.co/hhEAnqhAEu
  • There’s a strong correlation between interest rates and forex trading. Forex is ruled by many variables, but the interest rate of the currency is the fundamental factor that prevails above them all. Learn how interest rates impact currency markets here: https://t.co/J0EPMD2Cfi https://t.co/gNiVpWrd1p
  • 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/BdgFmkRxVw https://t.co/4zEwS7mFJE
  • 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/Yl9vM7kO6a https://t.co/nB2f5m56nq
  • 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/9S5tXIs3SX https://t.co/Q0yRRpMpPX
  • Emotions are often a key driving force behind FOMO. If left unchecked, they can lead traders to neglect trading plans and exceed comfortable levels of risk. Read on and get your emotions in check here: https://t.co/eILWbFgHRE https://t.co/pSeSiNnmHe
Euro Showing Divergent Price Action in EUR/USD, EUR/JPY

Euro Showing Divergent Price Action in EUR/USD, EUR/JPY

James Stanley, Senior Strategist

To receive James Stanley’s analysis directly via email, please SIGN UP HERE

Talking Points:

- A failed coup over the weekend in Turkey highlights the potential for increased geopolitical risk in capital markets.

- The Euro is showing divergent price action setups against USD and JPY, with EUR/USD showing a bearish price action formation while EUR/JPY is putting in bullish overtones on respective 4-hour charts.

- If you’re looking for trading ideas, check out our Trading Guides. And if you want something more short-term in nature, check out our SSI indicator. If you’re looking for an even shorter-term indicator, check out our recently-unveiled GSI indicator.

While the early portion of this week is relatively mild on the macroeconomic data front, the ECB rate decision on Thursday combined with a continuation of U.S. earnings reports will likely be major focal points for global markets to open the week. But the larger potential for volatility will likely be driven by a recent up-tick in geopolitical risk, as a furthering of this theme could denominate volatile price action across capital markets. The weekend coup in Turkey is continuing to provide some risk factors despite its apparent failure, as President Erdogan’s response to the coup has raised some eyebrows. And with Turkey’s key role as a part of NATO, the fight against terror and as a focal point for European immigration - political volatility in the country can have large ramifications for the rest of the Western World. This is still a very new development and it can be difficult to estimate exactly how this might continue to transpire, but already we’ve seen some impact in the Turkish Lira and even the Euro.

Ahead of the ECB’s rate decision on Thursday we’ve seen divergent moves take place in key pairs of EUR/USD and EUR/JPY; and for traders looking to take a stance on the Euro in the week of some enhanced data risk there could be a setup on either side, or perhaps even hedged-exposure setup potential.

On the bearish side of the Euro, we’ve just seen EUR/USD break below a bear-flag formation on the 4-hour chart. We’re just about 100 pips below the 1.1150 psychological level as of this writing, and price action has been attempting to carve-out a ‘lower-high’ in the 1.1075-region on the under-side of the recent bear-flag in the pair. In EUR/USD, we’ve broken below the 7/13 swing-low in the pair.

Euro Showing Divergent Price Action in EUR/USD, EUR/JPY

Created with Marketscope/Trading Station II; prepared by James Stanley

And on the bullish side of the Euro, Yen weakness from last week’s developments in Japan have continued to show bullish overtones in EUR/JPY. While Friday’s gasp of Euro-weakness hit in EUR/JPY as well, it merely brought price action to a lower-high as opposed to the channel break + lower-low that was seen in EUR/USD. For traders looking at bullish setups in the Euro or even just areas of continued potential weakness in the Yen on the back of continued anticipation of even more Japanese stimulus, this could be a candidate with eyes on the 115.37 level of support, which is the 61.8% retracement of the ‘Abe-move,’ taking the low set in Q3 2012 just ahead of Mr. Abe’s election win to the highs set in 2014. Perhaps more importantly, this level has provided prior price action inflections indicating that other market participants are watching this level. For more details on this setup, please read our Technical Analysis piece on EUR/JPY entitled, 4-Hour Chart Showing Fresh Trend Potential.

Euro Showing Divergent Price Action in EUR/USD, EUR/JPY

Created with Marketscope/Trading Station II; prepared by James Stanley

--- Written by James Stanley, Analyst for DailyFX.com

To receive James Stanley’s analysis directly via email, please SIGN UP HERE

Contact and follow James on Twitter: @JStanleyFX

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

DISCLOSURES