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
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
Bullish
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
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
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
GBP/USD
Bullish
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
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
  • 🇬🇧 Gfk Consumer Confidence Final (JUN) Actual: -27 Previous: -30 https://www.dailyfx.com/economic-calendar#2020-07-02
  • Asia Preview⬇️ - US stocks spiked on jobs data, Treasury lifeline to distressed airlines - Risk-on tilt could be derailed by US-China tensions over Hong Kong - #NZDJPY trading on the cusp of key resistance – what happens now? https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/asia_am_briefing/2020/07/02/NZDJPY-May-Fall-as-US-China-Tensions-Escalate-Over-Hong-Kong.html
  • Heads Up:🇬🇧 Gfk Consumer Confidence Final (JUN) due at 23:01 GMT (15min) Previous: -36 https://www.dailyfx.com/economic-calendar#2020-07-02
  • Understanding the US-Mexico relationship and how the ebb and flow of economic activity in the former impacts the latter is crucial for trading USD/MXN. Get your $USDMXN market update from @ZabelinDimitri and @FxWestwater here:https://t.co/oCRV13zbF0 https://t.co/gSzGAUJx4F
  • RT @FxWestwater: S&P 500 Rallies as Key Insiders Dump Stock, Traders Add Shorts - @DailyFX $SPX $SPY https://www.dailyfx.com/forex/fundamental/article/special_report/2020/07/02/SP-500-Rallies-as-Key-Insiders-Dump-Stock-Traders-Add-Shorts.html https://t…
  • The Dow Jones may rise based on signals from trader positioning, placing the focus on resistance ahead. This is as the S&P 500 pressures a key falling trend line, will it hold? Find out from @ddubrovskyFX here:https://t.co/UvXqX50YIp https://t.co/rr2s58Zyls
  • Hey traders! Get your market highlights from @DailyFX Chief Strategist @JohnKicklighter. What are some charts and themes we are wrapping up with today? Find out 👇 https://t.co/HOGohRF7tD
  • Texas virus cases increase 4.7% vs prior 4.2% 7-day average - BBG
  • Forex Update: As of 20:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.51% 🇨🇦CAD: 0.17% 🇦🇺AUD: 0.16% 🇯🇵JPY: -0.03% 🇬🇧GBP: -0.05% 🇪🇺EUR: -0.11% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/9dkCjQChjR
  • Commodities Update: As of 20:00, these are your best and worst performers based on the London trading schedule: Gold: 0.32% Silver: -0.26% Oil - US Crude: -0.74% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/WNWW8VibD8
USD Index Breaks Trend, Sterling Presents Range-Trade Opportunity

USD Index Breaks Trend, Sterling Presents Range-Trade Opportunity

2012-02-24 17:20:00
David Song, Strategist
Share:

DJ FXCM Dollar Index

Index

Last

High

Low

Daily Change (%)

Daily Range (% of ATR)

DJ-FXCM Dollar Index

9809.12

9843.79

9793.85

-0.10

83.66%

USD_Index_Breaks_Trend_Sterling_Presents_Range-Trade_Opportunity_body_ScreenShot086.png, USD Index Breaks Trend, Sterling Presents Range-Trade Opportunity

The Dow Jones-FXCM U.S. Dollar Index (Ticker: USDollar) is 0.10 percent lower on the day after moving 84 percent of its average true range, and the pullback from 9,896 may gather pace over the following week as the greenback appears to have carved out a near-term top heading into March. As market sentiment improves, we may see the rebound in risk-taking behavior continue to dampen the appeal of the USD, but the dollar should consolidate going into the end of the week as the 30-minute relative strength index bounces back from a low of 31. As Fed Chairman Ben Bernanke is scheduled to deliver the semi-annual monetary policy report to Congress next week, dovish comments from the central bank head may produce a sharp selloff in the USD, but we may see Mr. Bernanke strike an improved outlook for the world’s largest economy as the recovery picks up.

USD_Index_Breaks_Trend_Sterling_Presents_Range-Trade_Opportunity_body_ScreenShot087.png, USD Index Breaks Trend, Sterling Presents Range-Trade Opportunity

As the economic docket scheduled for the following week is expected to show a more robust recovery in the U.S., the Fed’s Beige Book may dampen speculation for more quantitative easing should the survey highlight an improved outlook for growth and inflation. In turn, we may see the USDOLLAR regain its footing going into March, but the technical outlook points to additional weakness for the dollar as the bearish divergence in the relative strength index continues to pan out. As the index quickly reverts back from the 50-Day SMA (9,875), we may see the index come up against the 38.2 percent Fibonacci retracement (9,710) to test for support, and the reserve currency may track sideways over the near-term as investors weigh the outlook for monetary policy.

USD_Index_Breaks_Trend_Sterling_Presents_Range-Trade_Opportunity_body_ScreenShot088.png, USD Index Breaks Trend, Sterling Presents Range-Trade Opportunity

Two of the four components weakened against the dollar, led by a 1.13 percent decline in the Japanese Yen, while the British Pound bucked the trend, advancing 0.76 percent from the open. As the Bank of England softens its dovish tone for monetary policy, easing bets for more QE has helped to prop up the GBP/USD, and we may see the sterling continue to retrace the decline from the previous year should the central bank look to conclude its easing cycle in 2012. However, as the pound-dollar remains capped by the 200-Day SMA (1.5910), the exchange rate may continue to track sideways over the near-term, but we may see a bullish breakout in the GBPUSD next week as the economic docket for the U.K. is expected to highlight a more robust recovery.

--- 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

News & Analysis at your fingertips.