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
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
  • While #DXY is not my preferred go-to for a USD index, there seems to be a slight resemblance with an inverse H&S pattern going on here It is quite small, but still, there may be enough bullish implications here to get beyond the 50-day SMA for the first time since early November https://t.co/gpxhT8T8kp
  • US Indices at the Close: DOW JONES: 30,805.19, -0.60% NASDAQ: 13,000.01, -0.86%, S&P 500: 3,766.80, -0.76% $SPX $NDX $DJI
  • Fitch Ratings affirms UK at AA-, outlook negative - BBG $GBPUSD
  • Indices Update: As of 21:00, these are your best and worst performers based on the London trading schedule: Wall Street: 0.00% US 500: -0.01% FTSE 100: -0.08% Germany 30: -0.10% France 40: -0.12% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/gIL15xBjYZ
  • Bitcoin selling off today, now down almost 10% $BTC $USD #Bitcoin https://t.co/iej9CG6FH2
  • US Dollar stronger as stocks wobble, look set to end the week lower $USD $DXY https://t.co/0Fm6rMwkyY
  • Commodities Update: As of 19:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: -0.17% Gold: -0.92% Silver: -2.92% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/zvqbRrFFkz
  • What are some factors driving AUD? Get your free forecast for this quarter here:https://t.co/z85CIVYiuK #DailyFXGuides https://t.co/ChXMKNRZJq
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 98.77%, while traders in NZD/USD are at opposite extremes with 67.96%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/vhr8Gb1Bq6
  • Indices Update: As of 19:00, these are your best and worst performers based on the London trading schedule: France 40: 0.18% FTSE 100: 0.18% Germany 30: 0.12% Wall Street: -0.33% US 500: -0.46% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/7DGlE6dS0T
Post-FOMC USD Recovery in Focus as Bearish Momentum Falters

Post-FOMC USD Recovery in Focus as Bearish Momentum Falters

2013-09-19 17:50:00
David Song, Strategist

- USDOLLAR Pares FOMC Reaction; Threatens Bearish Momentum

- Japanese Yen Weakens Across the Board Despite Less-Dovish Bank of Japan

Index

Last

High

Low

Daily Change (%)

Daily Range (% of ATR)

DJ-FXCM Dollar Index

10549.71

10554.81

10483.56

0.65

127.62%

USDOLLAR Daily

Forex_Post-FOMC_USD_Recovery_in_Focus_as_Bearish_Momentum_Falters_body_Picture_3.png, Post-FOMC USD Recovery in Focus as Bearish Momentum Falters

Chart - Created Using FXCM Marketscope 2.0

  • USDOLLAR Marks Fresh Monthly Low (10,471); Holds June Low (10,469)
  • Former Support May Act as New Resistance: 10,582 (23.6 expansion) to 10,589 (50.0 retracement)
  • Break Below 10,469 Opens Up the May Low (10,399)
  • Relative Strength Index Rebounds from 25; Threatens Bearish Momentum

Release

GMT

Expected

Actual

Initial Jobless Claims (SEP 13)

12:30

330K

309K

Continuing Claims (SEP 6)

12:30

2900K

2787K

Current Account Balance (2Q)

12:30

-$97.0B

-$98.9B

Philadelphia Fed. (SEP)

14:00

10.3

22.3

Existing Home Sales (AUG)

14:00

5.25M

5.48M

Existing Home Sales (MoM) (AUG)

14:00

-2.6%

1.7%

Leading Indicators (AUG)

14:00

0.6%

0.7%

The Dow Jones-FXCM U.S. Dollar Index (Ticker: USDollar) continues to pare the decline following the Federal Open Market Committee (FOMC) interest rate decision amid the slew of positive data coming out of the world’s largest economy, and the greenback may continue to track higher over the remainder of the week as the Relative Strength Index breaks out of the bearish trend.

Despite the delay in the Fed’s exit strategy, the central bank remains on track to taper the asset-purchase program as the majority sees the first rate hike in 2015, and the more hawkish composition of the 2014 FOMC may spur a material shift in the policy outlook as the economic recovery is expected to gather pace next year.

Nevertheless, the bearish momentum in the USDOLLAR appears to be coming an end as the Relative Strength Index breaks out of the downward trend, and we may see a more pronounced reversal in the greenback as the central bank looks to switch gears.

Forex_Post-FOMC_USD_Recovery_in_Focus_as_Bearish_Momentum_Falters_body_ScreenShot125.png, Post-FOMC USD Recovery in Focus as Bearish Momentum Falters

USDJPY Daily

Forex_Post-FOMC_USD_Recovery_in_Focus_as_Bearish_Momentum_Falters_body_Picture_1.png, Post-FOMC USD Recovery in Focus as Bearish Momentum Falters
  • Maintains Upward Trending Channel; RSI Retains Bullish Momentum
  • Interim Resistance: 100.60-70 (61.8 expansion)
  • Interim Support: 97.50 (38.2 retracement) to 97.70 (38.2 expansion)

All four components weakened against the greenback, led by a 1.48 percent decline in the Japanese Yen, and the USDJPY stills looks constructive as it preserves the bullish setup carried over from the previous month.

Indeed, the muted market reaction to the less-dovish comments from Bank of Japan (BoJ) board member Takahide Kiuchi and Governor Haruhiko Kuroda suggests that the deviation in the policy outlook will continue to limit the downside for the USDJPY, and the bullish trend in the relative strength index certainly foreshadows a further advance in the exchange rate as the central bank is widely expected to further embark on its easing cycle.

In turn, we will target the topside objectives in the USDJPY going into the end of the week, but we will need to keep a close eye on the 61.8 percent Fibonacci expansion around 100.60-70 following the failed run earlier this month.

--- 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, please follow this link.

Trade Alongsidethe DailyFX Team on Analyst on Demand

Looking to use the DailyFX Trade Signals LIVE? Check out Mirror Trader.

New to FX? Watch this Video

Join us to discuss the outlook for the major currencies on the DailyFXForums

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

DISCLOSURES