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
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
Oil - US Crude
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
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
Mixed
USD/JPY
Bearish
More View more
Real Time News
  • The Federal Reserve System (the Fed) was founded in 1913 by the United States Congress. The Fed’s actions and policies have a major impact on currency value, affecting many trades involving the US Dollar. Learn more about the Fed here: https://t.co/ADSC4sIHrP https://t.co/Jkv0onMyZw
  • Why is JPY called a safe haven? What are some factors in its favor this quarter? Get your free forecast here: https://t.co/mzeJ5x73N3 #DailyFXGuides https://t.co/S4bwgGZxmw
  • 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/T3W8CIg5iy
  • 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/FPgZ5gkgrM
  • Key levels in forex tend to draw attention to traders in the market. These are psychological prices which tie into the human psyche and way of thinking. Learn about psychological levels here: https://t.co/8A1QhwMVKo https://t.co/E0KhcKHrOf
  • For some reason an old story has popped up - many apologies.... https://t.co/jHjQxyFRXM
  • The US dollar is unloved, oversold and at lows last seen over 30-months ago. At the moment there seems to be very little reason to buy the greenback. Get your $USD market update from @nickcawley1 here:https://t.co/VY3SLs35cp https://t.co/w5ljByv9cf
  • Trading Forex is not a shortcut to instant wealth, excessive leverage can magnify losses, and sentiment is a powerful indicator. Learn about these principles in depth here: https://t.co/lZFM8youtX https://t.co/CpqePQYF4E
  • 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/Rg2YGZCUCr
  • The non-farm payroll (NFP) figure is a key economic indicator for the United States economy. It is also referred to as the monthly market mover. Find out why it has been given this nickname here: https://t.co/yOUVEEqhc5 https://t.co/ftrbRkFiJF
USD Index Threatens Broader Trend, Sterling Eyes Fresh 2012 Highs

USD Index Threatens Broader Trend, Sterling Eyes Fresh 2012 Highs

2012-04-17 16:20:00
David Song, Strategist

Index

Last

High

Low

Daily Change (%)

Daily Range (% of ATR)

DJ-FXCM Dollar Index

9933.05

9964.76

9922.78

-0.03

69.55%

USD_Index_Threatens_Broader_Trend_Sterling_Eyes_Fresh_2012_Highs_body_ScreenShot041.png, USD Index Threatens Broader Trend, Sterling Eyes Fresh 2012 Highs

The Dow Jones-FXCM U.S. Dollar Index (Ticker: USDollar) is 0.12 percent lower from the open after moving 70 percent of its average true range, and we may see the reserve currency track lower over the remainder of the week as it trades back within the downward trending channel from the beginning of the month. However, we will be closely watching the 30-minute relative strength index over the next 24-hours of trading as there appears to be a bullish divergence in the oscillator, and the technical development certainly foreshadows a short-term rebound for the index, which should preserve support around 9,900. In turn, we may see the dollar regain its footing going into the middle of the week, but risk-trends are expected to dictate price action for the greenback as the economic docket remains fairly light over the coming days.

USD_Index_Threatens_Broader_Trend_Sterling_Eyes_Fresh_2012_Highs_body_ScreenShot033.png, USD Index Threatens Broader Trend, Sterling Eyes Fresh 2012 Highs

As the USDOLLAR struggles to hold above the 61.8 percent Fibonacci retracement around 9,949, the index appears to be threatening the upward trending channel from earlier this year, but we will maintain our bullish call on the reserve currency as long as 9,900 holds up. Indeed, the daily RSI paints a bearish outlook for the greenback as the downward trend continues to take shape, and we may see the dollar fall back towards the 50.0 Fib around 9,830 should the divergence continue to play out. As the G20 meeting in Washington comes into focus, the rise in market sentiment may gather pace over the coming days, and we may see market participants continue to move away for the reserve currency as global policy makers pledge to increase their efforts in addressing the risks surrounding the world economy. However, the group may struggle to meet on common ground as the euro-area seeks additional assistance from the global community, and we may see market participants scale back their appetite for risk should world officials fail to instill an improved outlook for the world economy.

USD_Index_Threatens_Broader_Trend_Sterling_Eyes_Fresh_2012_Highs_body_ScreenShot043.png, USD Index Threatens Broader Trend, Sterling Eyes Fresh 2012 Highs

Two of the four components advanced against the greenback, led by a 0.46 percent rally in the Australian dollar, which was following by a 0.19 percent gain in the British Pound. Indeed, the sterling extended the advance from earlier this month as sticky price pressures in the U.K. dampens speculation for more quantitative easing, and we may see the Bank of England Minutes push the exchange rate higher as the central bank continues to soften its dovish tone for monetary policy. Indeed, the shift in the policy outlook should prop up the sterling going forward, and the GBPUSD looks poised to mark fresh highs for 2012 as the upward trending channel continues to take shape. In turn, we anticipate to see the pound-dollar to make a run at the 23.6 percent Fib from the 2009 low to high around 1.6250, and we may see the sterling outperform against its major currency counterparts as BoE officials anticipate to see a stronger recovery later this year.

--- 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, send an e-mail with subject line "Distribution List" to dsong@dailyfx.com.

Join us to discuss the outlook for the major currencies on the DailyFX Forums

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

DISCLOSURES