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
  • It’s important for traders to be familiar with FX spreads as they are the primary cost of trading currencies. Understand a pair's spread here: https://t.co/zEEUHZBx7g https://t.co/LcfxFxFrTY
  • Forex sentiment analysis can be a useful tool to help traders understand and act on price behavior. Learn how to get the most out of understanding trader sentiment here: https://t.co/rJznrXkcYz https://t.co/UgYlEILK5n
  • 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/BXp2z6E0Kl
  • Greed is a natural human emotion that affects individuals to varying degrees. Unfortunately, when viewed in the context of trading, greed has proven to be a hindrance more often than it has assisted traders. Learn how to control greed in trading here: https://t.co/kODPAfJE79 https://t.co/xGuTYZqYwh
  • There are three major forex trading sessions which comprise the 24-hour market: the London session, the US session and the Asian session. Learn about the characteristics of each session here: https://t.co/reRmDe1Ksp https://t.co/EvRHfRQLgk
  • The Australian Dollar remains vulnerable in the week ahead, eyeing risks such as a dovish RBA, surging Covid cases and recent crackdowns by Beijing. Might US NFPs offer some relief to AUD/USD? Get your weekly AUD forecast from @ddubrovskyFX here: https://t.co/LQzQymM3ND https://t.co/XOCJl3vbu1
  • $AUDNZD closed at its lowest since December 2020 Prices pierced the 1.0541 - 1.0564 support zone, exposing the November low at 1.0418 A confirmatory downside close under support next week may open the door to further losses #AUD #RBA https://t.co/mybbgPHNX4
  • Did you know a Doji candlestick signals market indecision and the potential for a change in direction. What are the top five types of Doji candlesticks? Find out https://t.co/c51s3IBcEu https://t.co/k49UosZOUR
  • The US Dollar seems to be losing its momentum against ASEAN currencies as of late. Could this be another top in USD/SGD, USD/THB, USD/PHP and USD/IDR? Find out from @ddubrovskyFX here:https://t.co/rVBKBuhhAb https://t.co/lTT6oelIEc
  • Technical analysis of charts aims to identify patterns and market trends by utilizing differing forms of technical chart types and other chart functions. Learn about the top three technical analysis tools here: https://t.co/KDjIjLdTSk https://t.co/JTw3w7KYXP
Dollar, Cable Price Action to Face Tests During Slow Data Week

Dollar, Cable Price Action to Face Tests During Slow Data Week

James Stanley, Senior Strategist

Talking Points

- Two of the strongest currencies in the post-Election environment are seeing various forms of weakness; with the British Pound testing a long-term zone of support while the U.S. Dollar attempts to get back into its prior bullish up-trend.

- This week’s economic docket is relatively light, with the highlights being Chinese data (on Tuesday) and Fed-speak (on Thursday).

- If you’re looking for trading ideas, check out our Trading Guides.

To receive James Stanley’s Analysis directly via email, please sign up here.

This week is relatively light on the data front with the highlights being Chinese data on Tuesday and and then five different Fed members giving speeches on Thursday. But even with the expectation of fewer drivers on the calendar, there are a litany of price action themes that could see further development throughout the week. Below we look at three of the more pivotal themes across global markets.

Is the U.S. Dollar Ready to Go Bullish Again?

After a blistering close to 2016 the U.S. Dollar has faced quite a bit of volatility in the first nine days of 2017. After first running-up to set a new high to start the year the Greenback fell through support only a couple of days later. Given how strong the trend in the U.S. Dollar had been running and this break of support made sense as an indication of congestion or a deeper retracement; but last week’s Non-Farm Payrolls report helped to form a bottom in the Greenback and prices have been running higher ever since.

We aren’t quite out of the woods yet: As we had looked at last Friday, the U.S. Dollar has yet to take out its prior ‘swing-high,’ so price action isn’t yet bullish and won’t be until that takes place. At this point, it looks as though we have a ‘lower-high’ which could precede a deeper retracement. Of specific importance for this theme are those Five Fed speakers on Thursday.

Dollar, Cable Price Action to Face Tests During Slow Data Week

Chart prepared by James Stanley

Will Cable (GBP/USD) Find Support in the Long-Term Zone?

One currency that has made a definitive movement thus far on the week is the British Pound as price action is crashing lower. Renewed talks around Brexit with the prospect of a ‘harder Brexit’ has brought renewed selling into the Pound to test a zone of support that’s been rather rigid since first coming to the fray in October of last year. Retail traders are certainly bearish with 79% currently short, but given Sterling’s inability to break below this zone in October, confirmed support could lead to a plethora of interesting setups across GBP-pairs.

Dollar, Cable Price Action to Face Tests During Slow Data Week

Chart prepared by James Stanley

Will Chinese Data Elicit Macro Worries?

To start last year concerns around the Chinese economy raged across global markets. Much of that concern abated after Chair Yellen’s Humphrey Hawkins testimony last February; but more recently concerns around China have begun to resurface as the economy is seeing FX reserves dwindle further and further. The recent moves in the Yuan are somewhat representative of these concerns as Chinese regulators have guided the Yuan through quite a bit of volatility over the past few trading days.

Tomorrow brings us Chinese Inflation and New Yuan Loans, each of which could help get a glimpse into recent Chinese economic performance in order to gauge how aggressively any form of slowdown may be creeping-in to China’s economy.

Dollar, Cable Price Action to Face Tests During Slow Data Week

Chart 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