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
More View more
Real Time News
  • It’s important for traders to be familiar with FX spreads as they are the primary cost of trading currencies. Understand a pair's spread here: https://t.co/zEEUHZBx7g https://t.co/jZHcyAZ5SU
  • Further your forex knowledge and gain insights from our expert analysts on EUR with our free guide, available today: https://t.co/XtydfV5wS6 https://t.co/Iw9haaHAnn
  • 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/ADSC4sr63f https://t.co/raO3gCGqQ6
  • 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/rWVlBs6H3c
  • The update to the US Consumer Price Index (CPI) is likely to sway the US Dollar during the Federal Reserve’s blackout period as the central bank braces for a transitory rise in inflation. Get your weekly $USD forecast from @DavidJSong here: https://t.co/JTuP7CLlyi https://t.co/tOvqn3Gdpc
  • Becoming a forex trader means living and breathing the excitement, risk and reward of trading in the biggest and most liquid market in the world. Do you have what it takes? Read here to discover the qualities and processes it takes to build consistency: https://t.co/EfWEACQ6Cz https://t.co/s5dn4ZKnku
  • Becoming a forex trader means living and breathing the excitement, risk and reward of trading in the biggest and most liquid market in the world. Do you have what it takes? Read here to discover the qualities and processes it takes to build consistency: https://t.co/EfWEACyvdZ https://t.co/6VjW5FEiQW
  • Global stocks bounce back from recent pullback as key resistance levels lie ahead. Get your weekly equities forecast from @HathornSabin here: https://t.co/wXSWo1JygD https://t.co/vWVaSEQTXT
  • Do you know how to properly Identify a double top formation? Double tops can enhance technical analysis when trading both forex or stocks, making the pattern highly versatile in nature. Learn more about the double top formation here: https://t.co/t9FlspUVZz https://t.co/9kfBu04auM
  • 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/lgDf5ddzFV https://t.co/8GJ6OQYgnW
Bullish EURUSD Momentum Falters- Carves Top on ECB/Fed Policy

Bullish EURUSD Momentum Falters- Carves Top on ECB/Fed Policy

David Song, Strategist

Talking Points:

- USDOLLAR Consolidates as FOMC Remains Data-Dependent

- Euro Struggles as European Central Bank (ECB) Sticks to Easing Cycle

Index

Last

High

Low

Daily Change (%)

Daily Range (% of ATR)

DJ-FXCM Dollar Index

10538.1

10562.92

10527.36

-0.24

65.60%

USDOLLAR Daily

Forex_Bullish_EURUSD_Momentum_Falters-_Carves_Top_on_ECBFed_Policy_body_Picture_3.png, Bullish EURUSD Momentum Falters- Carves Top on ECB/Fed Policy

Chart - Created Using FXCM Marketscope 2.0

  • USDOLLAR Eyes Sunday Gap Open as It Holds June Low (10,469)
  • Former Support Offers Interim Resistance: 10,582 (23.6 expansion) to 10,589 (50.0 retracement)
  • Soft Support: 10,469 (June low)
  • Relative Strength Index Carving Bullish Momentum

Release

GMT

Expected

Actual

Chicago Fed National Activity Index (AUG)

12:30

-0.05

0.14

Fed's Dennis Lockhart Speaks on U.S. Economy

13:20

Fed's William Dudley Speaks on U.S. Economy

13:30

Fed's Richard Fisher Speaks on Banking Sector

17:30

The near-term pullback the Dow Jones-FXCM U.S. Dollar Index (Ticker: USDollar) continued to take shape on Monday as New York Fed President William Dudley and Atlanta Fed President Dennis Lockhart voiced their support for the highly accommodative policy stance, but the reserve currency certainly looks poised for a more meaningful recovery as the central bank remains largely on track to implement its exit strategy over the coming months.

Indeed, the bullish breakout in the Relative Strength Index should limit the downside for the USD, and we may see the greenback trade on a firmer footing later this week as the final 2Q GDP report is expected to show an upward revision in the growth rate to 2.6 percent from an initial forecast of 2.5 percent.

In turn, the fundamental and technical developments should encourage a more meaningful recovery in the USDOLLAR, and we may see a move back into the 38.2 percent Fibonacci expansion around 10,652 should we see a growing number of Fed officials show a greater willingness to taper the asset-purchase program at the October 29-30 meeting.

Forex_Bullish_EURUSD_Momentum_Falters-_Carves_Top_on_ECBFed_Policy_body_ScreenShot133.png, Bullish EURUSD Momentum Falters- Carves Top on ECB/Fed Policy

EURUSD Daily

Forex_Bullish_EURUSD_Momentum_Falters-_Carves_Top_on_ECBFed_Policy_body_Picture_1.png, Bullish EURUSD Momentum Falters- Carves Top on ECB/Fed Policy
  • Poised to Mark Another Failed Attempt to Close Above 1.3530-40 (50.0 expansion)
  • RSI Comes Off of Overbought; Bullish Momentum Falters
  • Interim Resistance: 1.3650 (78.6 expansion) to 1.3710 (2013 high)
  • Former Resistance to Offer Support: 1.3360 (38.2 expansion) to 1.3380 Pivot

Three of the four components advanced against the greenback, led by a 0.67 percent rally in the Japanese Yen, while the Euro bucked the trend as European Central Bank (ECB) President Mario Draghi struck a rather dovish tone for monetary policy.

Indeed, Mr. Draghi argued that the Governing Council may implement another Long-Term Refinancing Operation (LTRO) to further insulate the monetary union, and it seems as though the ECB may have little choice but to further embark on its easing cycle as the governments operating under the monetary union become increasingly reliant on monetary support.

In turn, the EURUSD appears to be carving a top going into the end of September, and will for the downside targets to come into play amid the ongoing turmoil in the euro-area.

--- 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