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
EUR/USD
Mixed
Oil - US Crude
Bullish
Wall Street
Mixed
Gold
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
GBP/USD
Mixed
USD/JPY
Mixed
More View more
Real Time News
  • Forex Update: As of 02:00, these are your best and worst performers based on the London trading schedule: 🇬🇧GBP: 0.25% 🇦🇺AUD: 0.24% 🇯🇵JPY: 0.20% 🇪🇺EUR: 0.16% 🇳🇿NZD: 0.14% 🇨🇭CHF: 0.11% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/ajs1wgZFD2
  • #Market Snapshot Broad risk-on tilt to kick off a fresh week of trade as the risk-sensitive $AUDUSD jumps back above the 0.73 mark. Haven-linked $USD drifting lower against its major counterparts while $JPY attempts to peg back lost ground. https://t.co/yWVnyRKfbT
  • The US #Dollar may fall if demand for haven-linked assets fall after testimonies from Powell and Mnuchin to the House. Better-than-expected data may compound the Greenback’s selling streak. Get your #currencies update from @ZabelinDimitri here: https://t.co/HRjFvPKlvx https://t.co/n2IMVDqpZn
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.06%, while traders in NZD/USD are at opposite extremes with 71.11%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/eoCmgXp0MN
  • There is a great debate about which type of analysis is better for a trader. Is it better to be a fundamental trader or a technical trader? Find out here:https://t.co/7kPzAoNoLG https://t.co/QVVQkoSwMW
  • The S&P 500 index may struggle in the near term – drifting sideways within the bounds of its Bollinger Band – but the overall trend still looks bullish. Get your #equities update from @margaretyjy here: https://t.co/BysksU7lWj https://t.co/UV0hFkZBte
  • #EURUSD Breaking Down, #tiktokban Averted. Biden Leads Trump in Polls https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/asia_am_briefing/2020/09/20/EURUSD-Breaking-Down-TikTok-Ban-Averted-Biden-Leads-Trump-in-Polls.html
  • Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Learn about FX leverage here: https://t.co/3Wked6GBOp https://t.co/RwX8BpOSiz
  • Join analyst @DavidJSong at 6:30 PM ET/10:30 PM GMT for your weekly update on key news trading events. Register here: https://t.co/gBlrRpCc55 https://t.co/dQxyAORI9P
  • *Reminder: Weekly Strategy Webinar tomorrow morning at 8:30am ET on DailyFX! https://t.co/lxd5fZnn4H
USD Rebound Threatened by Former Support- AUD Lower High in Place

USD Rebound Threatened by Former Support- AUD Lower High in Place

2014-02-20 17:25:00
David Song, Strategist
Share:

Talking Points:

- USDOLLAR Rallying Into Former Support Following FOMC Minutes

- Australian Dollar Fails to Maintain Bullish Momentum- At Risk for Lower Low

Index

Last

High

Low

Daily Change (%)

Daily Range (% of ATR)

DJ-FXCM Dollar Index

10593.85

10595.25

10563.08

0.20

86.86%

USDOLLAR Daily

Forex_USD_Rebound_Threatened_by_Former_Support-_AUD_Lower_High_in_Place_body_Picture_3.png, USD Rebound Threatened by Former Support- AUD Lower High in Place

Chart - Created Using FXCM Marketscope 2.0

  • Former Support in Focus as USD Searches for Lower High
  • Interim Resistance: 10,657 (61.8 expansion)- Former Support
  • Interim Support: 10,509 (23.6 retracement) to 10,524 (38.2 retracement)

Release

GMT

Expected

Actual

Consumer Price Index (MoM) (JAN)

13:30

0.1%

0.1%

Consumer Price Index (YoY) (JAN)

13:30

1.6%

1.6%

Consumer Price Index ex Food & Energy (MoM) (JAN)

13:30

0.1%

0.1%

Consumer Price Index ex Food & Energy (YoY) (JAN)

13:30

1.6%

1.6%

Consumer Price Index n.s.a. (JAN)

13:30

233.770

233.916

Consumer Price Index Core Index s.a. (JAN)

13:30

235.884

235.843

Initial Jobless Claims (FEB 15)

13:30

335K

336K

Continuing Claims (FEB 7)

13:30

2970K

2981K

Markit Purchasing Manager Index (FEB P)

13:58

53.6

56.7

Philadelphia Fed. (FEB)

15:00

8.0

-6.3

Mortgage Delinquencies (4Q)

15:00

--

6.39%

MBA Mortgage Foreclosures (4Q)

15:00

--

2.86%

Leading Indicators (JAN)

15:00

0.3%

0.3%

The Dow Jones-FXCM U.S. Dollar Index (Ticker: USDollar) continued to retrace the sharp decline from earlier this month following the Federal Open Market Committee (FOMC) Minutes, and the short-term rebound may gather pace over the remainder of the week as the central bank remains poised to discuss another $10B taper at the March 19 meeting.

With Fed Chair Janet Yellen scheduled to testify in front of the Senate Banking Committee on February 27, the relief rally may gather pace ahead of the key event as a growing number of central bank officials see Quantitative Easing (QE) coming to an end later this year, but the bearish momentum in the Relative Strength Index (RSI) may limit the recent advance in the USDOLLAR as it comes up against former support.

With that said, the greenback could be at risk of carving a new series of lower highs paired with lower lows, and we may see former support (10,604-10,615) act as new resistance as the recent weakness in economic activity weighs on the interest rate outlook.

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

Forex_USD_Rebound_Threatened_by_Former_Support-_AUD_Lower_High_in_Place_body_ScreenShot128.png, USD Rebound Threatened by Former Support- AUD Lower High in Place

AUDUSD Daily

Forex_USD_Rebound_Threatened_by_Former_Support-_AUD_Lower_High_in_Place_body_Picture_1.png, USD Rebound Threatened by Former Support- AUD Lower High in Place
  • Price & RSI Retain Bullish Trend- Former Resistance Acting as New Support?
  • Interim Resistance: 0.9050 (23.6% expansion) to 0.9070 (38.2% retracement)
  • Interim Support: 0.8670 (100.0% expansion) to 0.8700 (78.6% expansion)

The greenback rallied against all four components, led by a 0.31 percent decline in the Euro and British Pound, while the Australian dollar remains at risk for a larger decline as the AUDUSD carves a lower high in February.

Indeed, the technical outlook for the aussie-dollar is turning increasingly bearish as the RSI fails to maintain the upward trend carried over from the previous month, and the higher-yielding currency remains at risk of facing fresh lows over the near to medium-term as the $1T economy faces subdued wage growth along with higher unemployment.

In turn, the Reserve Bank of Australia (RBA) may have little choice but to further embark on its easing cycle, and we will maintain our long-term bearish outlook for the AUDUSD amid the deviation in the policy outlook.

--- 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