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
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
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
  • What suits your style of trading stocks or commodities? Find out what are the differences in these two markets here: https://t.co/BnA07cMV0s https://t.co/LDP3HlN4A3
  • GBP/USD on the front foot to close the week. Bulls aim for YTD peak, while EUR/GBP range is maintained. Get your market update from @JMcQueenFX here: https://t.co/neGBchlJ0O https://t.co/KME51FSF0D
  • What's the difference between leading and lagging indicators? Find out from here: https://t.co/vGx8HCrRwD https://t.co/7w5jodyzj0
  • 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/lgDf5cVYOn https://t.co/L3LPCph2ST
  • Make smart trading decisions with your free guide to trade the news. Download your free guide here.https://t.co/pb5E2KgRzW #DailyFXGuides https://t.co/ysxKO30ZWw
  • Currency exchange rates are impacted by several factors. Are different world leaders a contributing factor? Find out here: https://t.co/4jsORznRTE https://t.co/5nHxtlZ7nn
  • 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/IsnpfJhp91 https://t.co/lqpXwWjVFt
  • Looking for a new way to trade reversals? One of the most used reversal candle patterns is known as the Harami. Like most candlestick formation patterns, the Harami tells a story about sentiment in the market. Get better with trading reversals here: https://t.co/rfwUWJfbz9 https://t.co/CrpXuYgfRO
  • MACD who? The Moving Average Convergence Divergence (MACD) is a technical indicator which simply measures the relationship of exponential moving averages (EMA). Find out how you can incorporate MACD into your trading strategy here: https://t.co/ZNs4Qi8ieG https://t.co/VzEbQn8blk
  • Brush up your knowledge on trade-wars with this tool from DailyFX research briefly outlining trade-war history dating back to the early 1900s here: https://t.co/bZEFtp8kFe https://t.co/ETF52Q2sLz
US Dollar Price Action Setups: EUR/USD, GBP/USD, AUD/USD

US Dollar Price Action Setups: EUR/USD, GBP/USD, AUD/USD

James Stanley, Senior Strategist

US Dollar, EUR/USD, GBP/USD, AUD/USD Price Analysis:

US Dollar Reverts to Support

The US Dollar has moved back to a key zone of support following last week’s test in the same area. This is the same zone of prices that helped to set the three-month-low in June, spanning from 95.86-96.05 on the DXY chart.

Given the increasing frequency of tests with the lower-highs that have continued to post, and the USD may be carrying breakout potential as we move deeper into Q3 trade. Bears are continuing to press the matter but, as yet, price action hasn’t been able to test below that June swing low. On the below two-hour chart, the lower-highs that have been posting since the Q3 open are highlighted by two red trendlines. The support zone in question, highlighted in blue, is now facing its third test since the June open.

US Dollar Two-Hour Price Chart

US Dollar Two Hour Price Chart

Chart prepared by James Stanley; USD, DXY on Tradingview

US Dollar Bigger Picture

Taking a step back on the chart and we can see how this same zone has been in-play on the US Dollar for the past couple of years. Notably, this area of prices helped to set the low in DXY on multiple occasions in 2019, including February, March and then again in June. It came back into the equation this March, as the coronavirus was getting priced-in; and while price action did test below this area, that theme was brief, and bulls quickly pushed prices back above this key spot on the chart.

The big question: As coronavirus new cases swell and as expectations for a continued dovish outlook from the FOMC permeate the backdrop – will USD bears be able to finally push below this area on the chart for a lasting move? The answer to that will likely be at least partly associated with whether or not bulls can grab ahold of the Euro, and we’ll investigate that in our next set of charts.

US Dollar Weekly Price Chart

US Dollar Weekly Price Chart

Chart prepared by James Stanley; USD, DXY on Tradingview

EUR/USD Returns to Resistance, EU Summit Looms Large

This morning’s ECB rate decision brought little by the way of new information; but EUR/USD did show a quick move back up to a key spot of resistance. Perhaps the more interesting item on the horizon is the EU Summit, where there is certainly the opportunity for some new information to filter into markets. This may, however, present some gap risk as that Summit spans into the weekend after many markets have already closed down.

The big spot of emphasis on the pair is the 1.1446-1.1500 zone which, similar to the 95.86-96.05 zone on DXY above, has been in play for more than a year. The notable exception being that this zone hasn’t been violated in over a year; and the March outlay of volatility saw price action remain inside of the 1.1500 handle.

Will EUR/USD bulls bid the pair after next week’s open on the results of the EU summit? Or will this key zone hold yet another inflection before prices reverse and remain in the realm of mean-reversion?

EUR/USD Weekly Price Chart

EURUSD Weekly Price Chart

Chart prepared by James Stanley; EUR/USD on Tradingview

GBP/USD Builds Shorter-Term Range

While the British Pound enjoyed a boisterous start to Q3, the past week has been a bit more muted as prices have fallen back into a pattern of mean reversion. The upshot of that is that this short-term range has built within the confines of previously-established support and resistance zones, thereby keeping the door open for possible range strategies.

On the support side, the zone that runs from 1.2500-1.2518 has caught two separate support tests already this week; and the 1.2644-1.2689 zone has caught a couple of different resistance inflections, as well. Also coming in as an assist for support is a bullish trendline, drawn from the June 30th swing low, connecting to the Tuesday low; the projection of which ahs come into help set this morning’s low.

For those that want to look for USD strength – or a hold of USD in that key zone of support plotted above, range strategies in GBP/USD may remain as attractive. But, for those that are looking for a bearish break in USD, re-assigning that resistance to potential breakout logic on the long side may be the more operable way of moving forward.

GBP/USD Hourly Price Chart

GBPUSD Hourly Price Chart

Chart prepared by James Stanley; GBP/USD on Tradingview

AUD/USD: Aussie Back Above the Big Fig – Can Bulls Drive?

It was a peculiar first half of the year for AUD/USD, and really this was the tale of two trends. The year started with pain as AUD/USD crashed down to a fresh 17-year-low. But buyers showed up before AUD/USD could take out the .5500 level; and that hard bearish trend quickly turned into an aggressive bullish trend. By mid-June prices were already back-up to a fresh high and testing above the .7000 level, but that’s about the time that price action began to shift again.

Since that initial re-test of the .7000 handle more than a month ago, the pair has attempted to re-ascend above that spot on the chart multiple times. And each has failed so far, begging the question as to whether the pair can continue in its bullish trend without more of a pullback.

This can set a fairly interesting stage around the US Dollar: For those that do want to look for support to hold in USD, reversal scenarios in AUD/USD can remain attractive under the assumption that the .7000 level may continue to hold bulls at bay. Alternatively, for USD bears, bullish breakout potential could continue to be followed in AUD/USD, looking for that eventual breach of the .7000 level in which bulls maintain control up to fresh highs.

AUD/USD Four-Hour Price Chart

AUDUSD Four Hour Price Chart

Chart prepared by James Stanley; AUD/USD on Tradingview

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

Contact and follow James on Twitter: @JStanleyFX

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

DISCLOSURES