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
  • 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
  • Coinbase’s impending initial public offering could provide the necessary fuel for Bitcoin to push to fresh record highs in the coming days. Get your market update from @DanielGMoss here:https://t.co/twdu0zqmIM https://t.co/72HRMZlKUn
  • The Swiss Franc has positioned itself against key levels versus the Australian Dollar, New Zealand Dollar and Euro over the past week. Where next for AUD/CHF, NZD/CHF and EUR/CHF? Find out from @FxWestwater here:https://t.co/CrtQGzvWnm https://t.co/j5Zjn5zY0D
USD Index Primed For Reversal, British Pound To Search For Support

USD Index Primed For Reversal, British Pound To Search For Support

David Song, Strategist

DJ FXCM Dollar Index

Index

Last

High

Low

Daily Change (%)

Daily Range (% of ATR)

DJ-FXCM Dollar Index

9712.57

9718.4

9672.98

0.28

64.41%

USD_Index_Primed_For_Reversal_British_Pound_To_Search_For_Support_body_ScreenShot012.png, USD Index Primed For Reversal, British Pound To Search For Support

The Dow Jones-FXCM U.S. Dollar Index (Ticker: USDollar) is 0.28 percent higher from the open after moving 64 percent of its average true range, and the rebound from 9,672 should pick up over the next 24-hours of trading as it threatens the downward trending channel carried over from the previous month. As risk sentiment falters, the shift away from risk-taking behavior should prop up the USD, but we may see the reserve currency consolidate during the remainder of the day as the relative strength index approaches overbought territory. In turn, we could be seeing another false breakout in the index, but the flight to safety may gather pace on Thursday as we expect the Bank of England and the European Central Bank to strike a cautious outlook for their respective economies.

USD_Index_Primed_For_Reversal_British_Pound_To_Search_For_Support_body_ScreenShot013.png, USD Index Primed For Reversal, British Pound To Search For Support

As the USD climbs back above the 38.2% Fibonacci retracement (9,710), with the relative strength index holding above oversold territory, there’s a chance of seeing the short-term rebound turn into a larger correction. However, we would like to see the index break and close above the 10-Day SMA (9,738) to favor more dollar strength, and we will be closely watching the former support around 50.0 percent Fib around 9,830, which could play as new resistance. Nevertheless, market volatility may taper off during the overnight session as the European Central Bank interest rate decision comes into focus, but the policy statement may rattle investor confidence as we expect President Mario Draghi to maintain a dovish tone for monetary policy. As the euro-area slips back into recession, the Governing Council may see scope to push the benchmark interest rate below 1.00%, and the central bank may carry its easing cycle into the second-half of 2012 as subdued growth dampens the outlook for inflation. Should the ECB talk up speculation for additional monetary support, the weakening fundamentals for the euro-area could fuel the flight to safety, and the USDOLLAR looks poised to reverse course over the remainder of the month as it appears to be breaking out of the downward trend.

USD_Index_Primed_For_Reversal_British_Pound_To_Search_For_Support_body_ScreenShot014.png, USD Index Primed For Reversal, British Pound To Search For Support

All four components weakened against the greenback on Wednesday, led by a 0.55 percent decline in the British Pound, and the sterling may track lower over the next 24-hours of trading as the Bank of England is widely expected to expand its asset purchase program beyond the GBP 275B target. As the GBP/USD makes another failed run at the 200-Day SMA (1.5944), the pullback in the relative strength index instills a bearish outlook for the sterling, and we may see the exchange rate come up against the 38.2 percent Fib from the 2009 low to high around 1.5730-50 should the Monetary Policy Committee see scope to expand its balance sheet further later this year. As the BoE continues to see a risk of undershooting the 2% target for inflation, we should see Governor Mervyn King maintain a dovish outlook for monetary policy, but the central bank head may keep the door open to take additional steps to shore up the ailing economy as the U.K. faces an increased risk of facing a double-dip recession.

--- 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