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.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
Oil - US Crude
Wall Street
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
  • What is your forex trading style? Take the quiz and find out:
  • The ISM manufacturing index plays an important role in forex trading, with ISM data influencing currency prices globally. Find out about the recent history of ISM data, how to track it, and how to trade its release here:
  • The continuity seen across these volatility cycles is a good thing. Historical precedence offer a blueprint for identifying conditions supportive for a vol-event to occur, and how they may unfold. Deepen your knowledge of historical volatility here:
  • There’s a strong correlation between interest rates and forex trading. Forex is ruled by many variables, but the interest rate of the currency is the fundamental factor that prevails above them all. Learn how interest rates impact currency markets here:
  • 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:
  • GDP (Gross Domestic Product) economic data is deemed highly significant in the forex market. GDP figures are used as an indicator by fundamentalists to gauge the overall health and potential growth of a country. Learn use GDP data to your advantage here:
  • Traders utilize varying time frames to speculate in the forex market. The two most common are long- and short-term-time frames which transmits through to trend and trigger charts. Learn more about time-frame analysis here:
  • Emotions are often a key driving force behind FOMO. If left unchecked, they can lead traders to neglect trading plans and exceed comfortable levels of risk. Read on and get your emotions in check here:
  • There are three major forex trading sessions which comprise the 24-hour market: the London session, the US session and the Asian session. Learn about the characteristics of each session here:
  • Implementing a trading checklist is a vital part of the trading process because it helps traders to stay disciplined, stick to the trading plan, and builds confidence. Learn how to stick to the plan, stay disciplined, and use a checklist here:
GBP/USD Flashes Oversold Signal; FX Sentiment Holds Near 2016-Extreme

GBP/USD Flashes Oversold Signal; FX Sentiment Holds Near 2016-Extreme

David Song, Strategist

Talking Points:

- NZD/USD Downside Targets in Focus as Head-and-Shoulders Formation Unfolds.

- GBP/USD Flashes Oversold Signal; Retail Sentiment Holds Near 2016-Extreme.






Daily Change (pip)

Daily Range (pip)








NZD/USD Daily Chart

Chart - Created Using Trading View

  • NZD/USD stands at risk of extending the recent series of lower highs & lows as it appears to have carved a head-and-shoulders formation during the summer months, with the Relative Strength Index (RSI) also reinforcing a bearish outlook for the exchange rate as the oscillator breaks down from the bullish trend from earlier this year; head-and-shoulders projection suggests a move below the 0.7000 handle.
  • Will continue to monitor market expectations amid speculation the Reserve Bank of New Zealand (RBNZ) will deliver another rate-cut at its last 2016 interest-rate decision on November 10, but more of the same from Governor Graeme Wheeler and Co. may prop up the kiwi going into the end of 2016 amid the low-yielding environment.
  • Closing price below 0.7170 (38.2% retracement) raises the risk for a move towards the next downside target around 0.7040 (50% retracement) to 0.7080 (50% retracement).





Daily Change (pip)

Daily Range (pip)








GBP/USD Daily Chart

Chart - Created Using Trading View

  • GBP/USD continues to search for support as a growing number of European Union (EU) officials argue the U.K. needs to trigger Article 50 of the Lisbon treaty before starting negotiations, and the sterling remains at risk of facing further losses over the days ahead as the Relative Strength Index (RSI) flirts with oversold territory; break below 30 in the oscillator would suggest the bearish momentum is gathering pace, and would need to see a move out of oversold territory to suggest a near-term recovery is taking shape.
  • Growing concerns surrounding ‘Brexit’ may put increased pressure on the Bank of England (BoE) to implement more non-standard measures as the disconnect from the EU’s single-market raises the risk for a recession; deviating paths for monetary policy may heighten the bearish sentiment surrounding GBP/USD especially as Fed officials appear to be making a more collective effort to prepare U.S. households and businesses for a December rate-hike.
  • Will keep a close eye on the downside targets as GBP/USD carves a near-term series of lower highs & lows, with a break/close below 1.2630 (38.2% expansion) opening up the next downside region of interest at 1.2460 (618% expansion), followed by 1.2360 (50% expansion).
  • The DailyFX Speculative Sentiment Index (SSI) shows the FX crowd remains net-long GBP/USD since September 13, with the ratio hitting the most extreme reading since 2003 as it climbed to +5.66 earlier this week.
  • GBP/USD SSI currently stands at 5.71 as 85% are long, with long positions 29.8% higher from the previous week, while open interest is 28.9% above the monthly average.
  • NZD/USD SSI currently sits -1.42 as 41% of traders are long, with short positions 7.1% lower from the previous week as the ratio narrows from an extreme reading of -3.41 in September.
  • With the retail crowd stuck on the wrong, the SSI may continue to act as a contrarian indicator for GBP/USD especially as the pair carves a near-term series of lower highs & lows.

Why and how do we use the SSI in trading? View our video and download the free indicator here

DailyFX Calendar

Click Here for the DailyFX Calendar

Get our top trading opportunities of 2016 HERE

Read More:

COT-4th Most Selling by CAD Speculators Since at Least 2002

FTSE 100: Bull Pattern Breakout to Start Q4

FX Technical Weekly: Don’t Get Caught Fading the Next EUR/USD Move

USD/JPY Technical Analysis: Fault Lines Are Showing Favoring JPY

--- 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.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.