Never miss a story from David Song

Subscribe to receive daily updates on publications
Please enter valid First Name
Please fill out this field.
Please enter valid Last Name
Please fill out this field.
Please enter valid email
Please fill out this field.
Please select a country

I’d like to receive information from DailyFX and IG about trading opportunities and their products and services via email.

Please fill out this field.

Your Forecast Is Headed to Your Inbox

But don't just read our analysis - put it to the rest. Your forecast comes with a free demo account from our provider, IG, so you can try out trading with zero risk.

Your demo is preloaded with £10,000 virtual funds, which you can use to trade over 10,000 live global markets.

We'll email you login details shortly.

Learn More about Your Demo

You are subscribed to David Song

You can manage your subscriptions by following the link in the footer of each email you will receive

An error occurred submitting your form.
Please try again later.

Talking Points:

- GBP/USD Retail Crowd Remains Net-Short Despite Fresh 2015 Highs.

- USD/CAD Preserves Bearish Momentum Ahead of Canada CPI, Retail Sales.

- USDOLLAR Bearish Formation Takes Shape on Dovish FOMC.

For more updates, sign up for David's e-mail distribution list.


GBP/USD Daily Chart

Chart - Created Using FXCM Marketscope 2.0

  • GBP/USD climbs to a fresh 2015 high (1.5929) as U.K. Retail Sales showed an unexpected 0.2% rise in May; pair may continue to retrace the decline from back in July 2014 amid the tightening race between the Bank of England (BoE) & the Federal Reserve to normalize monetary policy.
  • May see a further advance in the days ahead as the Relative Strength Index (RSI) pushes into overbought territory, with a break/close above .15940 (61.8% expansion) opening the door to the 1.6000 handle.
  • DailyFX Speculative Sentiment Index (SSI) shows retail crowd remains net-short GBP/USD from June 16, with the ratio working towards extremes as the ratio slips to -1.44.


USD/CAD Daily Chart
  • USD/CAD may continue to give back the advance from May as the pair carves a bearish channel, while the RSI preserves the bearish momentum from earlier this month.
  • Even though Canada Retail Sales are projected to increase another 0.7% in April, a slowdown in the core Consumer Price Index (CPI) may dampen the appeal of the loonie as it raises the Bank of Canada’s (BoC) scope to retain a wait-and-see approach for an extended period of time.
  • Need break/close below the Fibonacci overlap around 1.2110 (61.8% retracement) to 1.2130 (23.6% retracement) to favor a run at the May low (1.1918).

Join DailyFX on Demand for Real-Time SSI Updates Across the Majors!

Read More:

Price & Time: USD/JPY Still Bullish?

British Pound Forecast to Gain on Material Shift in Positions

USDOLLAR(Ticker: USDollar):





Daily Change (%)

Daily Range (% of ATR)

DJ-FXCM Dollar Index







Chart - Created Using FXCM Marketscope 2.0

  • Dow Jones-FXCM U.S. Dollar remains at risk for a further decline following the more dovish tone from the Federal Reserve especially as price & RSI carve out a bearish formation.
  • Dollar may face additional headwinds over the near-term amid the growing risk for a further delay in the Fed’s normalization cycle; the ongoing weakness in the U.S. Consumer Price Index (CPI) may become a growing concern for the central bank as it struggles to achieve the 2% target for inflation.
  • A closing price below the Fibonacci overlap around 11,721 (38.2% expansion) to 11,745 (50% retracement) raise the risk of seeing a move back towards the May low (11,634).

Join DailyFX on Demand for Real-Time SSI Updates!

DailyFX Calendar

Click Here for the DailyFX Calendar

--- Written by David Song, Currency Analyst

To contact David, e-mail 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