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.

Free Trading Guides
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
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
Bearish
GBP/USD
Mixed
USD/JPY
Mixed
More View more
Real Time News
  • USD/CAD Trading Forecast - via @DailyFX: Canadian Dollar Eyes Jobs Data, Oil & OPEC+ Link to Analysis: https://www.dailyfx.com/forex/technical/home/analysis/usd-cad/2020/04/08/usdcad-forecast-canadian-dollar-eyes-jobs-data-oil-opec.html $USDCAD $CL_F #WTI #OOTT #Forex #FX https://t.co/mSrFIcdSs9
  • Fed's Kaplan: -Sees US unemployment rate rising above 10% to 'mid teens' but fall between 7-8% by year end -US GDP may plunge 25-35% in 2Q, shrink 4-5% on balance this year
  • RT @LiveSquawk: Fed's Kaplan: US GDP May Shrink 25% To 35% In Second Quarter, Then Grow In Second Half - RTRS - Sees US GDP Shrinking 4% T…
  • For Thursday's trading session we have: the RBA Financial Stability Review; UK GDP; Canadian employment; US consumer confidence (UMich for April) and the OPEC+ meeting. High profile event risk overriding liquidity fade into Good Friday?
  • $EURUSD Daily Pivot Points: S3: 1.0647 S2: 1.0762 S1: 1.0827 R1: 1.0941 R2: 1.0991 R3: 1.1106 https://www.dailyfx.com/pivot-points?ref=SubNav?utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • #Gold prices rallied by more than 7.7% from the April 1st low into yesterday’s. high. Get your $XAUUSD technical analysis from @JStanleyFX here: https://t.co/M9QeP4a5QH https://t.co/xc847ElRxe
  • RT @hmeisler: RUT green 3 straight. Hasn't gone 4 since early Feb.
  • $USDJPY Daily Pivot Points: S3: 107.91 S2: 108.39 S1: 108.58 R1: 109.05 R2: 109.34 R3: 109.81 https://www.dailyfx.com/pivot-points?ref=SubNav?utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • RT @LizAnnSonders: Small- & medium-sized firms constitute 44% of GDP & nearly half of private payrolls; which doesn’t bode well for economy…
  • RT @realDonaldTrump: White House news conference at 5:30 P.M. Eastern. Thank you!
USDOLLAR Searching for Support- GBP Poised for Fresh Highs

USDOLLAR Searching for Support- GBP Poised for Fresh Highs

2014-01-22 18:10:00
David Song, Strategist
Share:

Talking Points:

- Larger USDOLLAR Correction on Tap; Bearish RSI Divergence Gathers Pace

- British Pound Poised for Fresh Highs on Bank of England (BoE) Policy Outlook

Index

Last

High

Low

Daily Change (%)

Daily Range (% of ATR)

DJ-FXCM Dollar Index

10703.15

10729.11

10687.85

-0.18

102.04%

USDOLLAR Daily

Forex_USDOLLAR_Searching_for_Support-_GBP_Poised_for_Fresh_Highs_body_Picture_3.png, USDOLLAR Searching for Support- GBP Poised for Fresh Highs

Chart - Created Using FXCM Marketscope 2.0

  • Downside Targets in View After Carving Higher High (10,756)
  • Bearish RSI Divergence Favors ‘Selling Bounces’
  • Interim Resistance: 10,753 (23.6 expansion) to 10,759 (61.8 retracement)
  • Interim Support: 10,561 (100.0 extension)- Closing Basis

Release

GMT

Expected

Actual

MBA Mortgage Applications (JAN 17)

12:00

The Dow Jones-FXCM U.S. Dollar Index (Ticker: USDollar) looks poised a larger decline ahead of the Fed meeting as it carves a higher high going into the last full-week of trading for January.

Indeed, the greenback appears to be searching for a higher low as the Federal Open Market Committee (FOMC) is widely expected to discuss another $10B taper next week, but a move below interim support (10,561) may instill a more bearish forecast for the USD as the bearish divergence in the Relative Strength Index (RSI) continues to take shape.

In turn, the near-term correction may turn into a longer-term bearish trend should the Fed further delay its exit strategy, and we favor ‘selling bounces’ ahead of the Fed interest rate decision as long as the RSI divergence remains in play.

Join DailyFX on Demandto Cover Current U.S. Dollar Trade Setups

Forex_USDOLLAR_Searching_for_Support-_GBP_Poised_for_Fresh_Highs_body_ScreenShot010.png, USDOLLAR Searching for Support- GBP Poised for Fresh Highs

GBPUSD Daily

Forex_USDOLLAR_Searching_for_Support-_GBP_Poised_for_Fresh_Highs_body_Picture_1.png, USDOLLAR Searching for Support- GBP Poised for Fresh Highs
  • Looking for Higher High Following Topside RSI Break
  • Interim Resistance: 1.6550 (78.6 expansion) to 1.6600 Pivot
  • Interim Support: 1.6300 Pivot to 1.6310 (50.0 expansion)

Two of the four components rallied against the greenback, led by a 0.57 percent advance in the British Pound, and we will look for a higher high in the GBPUSD as the marked decline in U.K. Unemployment sparks a material shift in the policy outlook.

The ongoing improvement in the labor market may force the Bank of England (BoE) to normalize monetary policy ahead of schedule, and we may see Governor Mark Carney turn more hawkish over the near-term as the stronger recovery raises the threat for a housing-bubble.

In turn, we may see the BoE maintain the 7 percent unemployment threshold for its forward-guidance on monetary policy, and the GBPUSD may continue to retrace the decline from back in 2012 as the central bank moves away from its easing cycle.

--- 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 DailyFX 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

News & Analysis at your fingertips.