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
Oil - US Crude
Bearish
Wall Street
Mixed
Gold
Bullish
GBP/USD
Mixed
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
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 94.25%, while traders in Germany 30 are at opposite extremes with 77.17%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/dYXU7ukRwn
  • Heads Up:🇿🇦 Balance of Trade (OCT) due at 12:00 GMT (15min) Previous: ZAR33.51B https://www.dailyfx.com/economic-calendar#2020-11-30
  • Commodities Update: As of 11:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: -0.57% Gold: -0.85% Silver: -1.92% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/sqkI5pXajb
  • Forex Update: As of 11:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.31% 🇨🇦CAD: 0.28% 🇬🇧GBP: 0.18% 🇯🇵JPY: 0.10% 🇨🇭CHF: 0.10% 🇦🇺AUD: -0.04% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/JtkOOLrtBz
  • Heads Up:🇧🇷 BCB Focus Market Readout due at 11:30 GMT (15min) https://www.dailyfx.com/economic-calendar#2020-11-30
  • Indices Update: As of 11:00, these are your best and worst performers based on the London trading schedule: Germany 30: 0.20% FTSE 100: 0.11% France 40: -0.39% US 500: -0.45% Wall Street: -0.60% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/Z8IqQDxEvC
  • Dividend investing is the practice of investing in dividend-paying stocks. Why should you invest in dividend stocks? Find out: https://t.co/v8jRlj0OvP https://t.co/84CzBgWQLg
  • Heads Up:💶 ECB President Lagarde Speech due at 10:30 GMT (15min) https://www.dailyfx.com/economic-calendar#2020-11-30
  • 🇮🇹 Inflation Rate YoY Prel (NOV) Actual: -0.2% Previous: -0.3% https://www.dailyfx.com/economic-calendar#2020-11-30
  • Heads Up:🇮🇹 Inflation Rate YoY Prel (NOV) due at 10:00 GMT (15min) Previous: -0.3% https://www.dailyfx.com/economic-calendar#2020-11-30
USDOLLAR Preserves Bullish Trend for February- EUR Eyes Lower Low

USDOLLAR Preserves Bullish Trend for February- EUR Eyes Lower Low

2014-01-30 15:50:00
David Song, Strategist
Share:

Talking Points:

- USDOLLAR Maintains Bullish Trend Following $10B Taper, 4Q GDP

- Euro at Risk for Further Weakness on Dovish ECB- Lower Low Ahead?

Index

Last

High

Low

Daily Change (%)

Daily Range (% of ATR)

DJ-FXCM Dollar Index

10684.31

10701.95

10663.67

0.15

92.67%

USDOLLAR Daily

Forex_USDOLLAR_Preserves_Bullish_Trend_for_February-_EUR_Eyes_Lower_Low_body_Picture_3.png, USDOLLAR Preserves Bullish Trend for February- EUR Eyes Lower Low

Chart - Created Using FXCM Marketscope 2.0

  • Retains Bullish Trend- Higher High on Tap for February?
  • Relative Strength Index
  • 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

Gross Domestic Product (Annualized) (QoQ) (4Q A)

13:30

3.2%

3.2%

Personal Consumption (4Q A)

13:30

3.7%

3.3%

GDP Price Index (4Q A)

13:30

1.2%

1.3%

Core PCE (QoQ) (4Q A)

13:30

1.1%

1.1%

Initial Jobless Claims (JAN 25)

13:30

330K

348K

Continuing Claims (JAN 18)

13:30

3000K

2991K

ISM Milwaukee (JAN)

14:00

54.50

52.82

Pending Home Sales (MoM) (DEC)

15:00

-0.3%

-8.7%

Pending Home Sales (YoY) (DEC)

15:00

-0.3%

-6.1%

The Dow Jones-FXCM U.S. Dollar Index (Ticker: USDollar) may track higher in February as it retains the bullish trend carried over from the previous year, and the fundamental developments coming out of the world’s largest economy may continue to limit the downside risk for the greenback as the Federal Open Market Committee (FOMC) looks poised to deliver another $10B taper at the March 19 meeting.

With the U.S. economy growing an annualized 3.2 percent in the fourth quarter, the Fed should continue to wind down its asset-purchase program as the central bank sees a stronger recovery in 2014, and the USDOLLAR may probe fresh highs in the coming days as it carves a higher low around trendline support.

As a result, we will eye the topside targets going into the month ahead, and will for opportunities to ‘buy dips’ in the dollar as the Fed moves away from its easing cycle.

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

Forex_USDOLLAR_Preserves_Bullish_Trend_for_February-_EUR_Eyes_Lower_Low_body_ScreenShot034.png, USDOLLAR Preserves Bullish Trend for February- EUR Eyes Lower Low

EURUSD Daily

Forex_USDOLLAR_Preserves_Bullish_Trend_for_February-_EUR_Eyes_Lower_Low_body_Picture_1.png, USDOLLAR Preserves Bullish Trend for February- EUR Eyes Lower Low
  • Downtrend Taking Shape After Failure to Close Above 1.38; Accompanied by Bearish RSI
  • Interim Resistance: 1.3800 (100.0 expansion) to 1.3830 (61.8 retracement)
  • Interim Support: 1.3500 Pivot to 1.3530 (61.8 expansion)

Three of the four components lost ground against the dollar, led by a 0.58 percent decline in the Euro, and the bearish trend in the EURUSD may gather pace in the week ahead should the European Central Bank (ECB) show a greater willingness to further embark on its easing cycle.

The ECB is widely expected to retain its current policy at the February 6 meeting as President Mario Draghi sees a limit risk for deflation, but we may see the central bank implement another dovish twist tdo its forward-guidance amid the underlying weakness in the euro economy.

With that said, the EURUSD may continue to give back the rebound from November should the Governing Council highlight a greater risk to its economic outlook, and we may see a growing rift within the central bank as the region continues to face a protracted 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, 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