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
Mixed
Wall Street
Bearish
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
Bearish
USD/JPY
Bullish
More View more
Real Time News
  • Heads Up:💶 Industrial Sentiment (JAN) due at 10:00 GMT (15min) Expected: -7.2 Previous: -7.2 https://www.dailyfx.com/economic-calendar#2021-01-28
  • Heads Up:💶 Consumer Confidence Final (JAN) due at 10:00 GMT (15min) Expected: -15.5 Previous: -13.9 https://www.dailyfx.com/economic-calendar#2021-01-28
  • Heads Up:💶 Economic Sentiment (JAN) due at 10:00 GMT (15min) Expected: 89.5 Previous: 90.4 https://www.dailyfx.com/economic-calendar#2021-01-28
  • Is it really a retail-driven short squeeze that's at the heart of this market rout? Let's just say I'm dubious... More here: US Dollar Aims Higher as Liquidation Sweeps Global Stock Markets - https://www.dailyfx.com/forex/fundamental/daily_briefing/session_briefing/euro_open/2021/01/28/US-Dollar-Aims-Higher-as-Liquidation-Sweeps-Global-Stock-Markets-.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Spivak&utm_campaign=twr #Gamestop #Dollar #StockMarket https://t.co/ngmBEYpp8p
  • Break of range support at 0.768 - 0.7640 has propelled $AUDUSD to its lowest levels since late 2020, with the RSI registering its first intraday oversold readings since October. Symmetrical Triangle measured move suggests price could be poised to challenge the 0.7500 mark https://t.co/xuuW7NFy48 https://t.co/KisfWhYKzM
  • The London trading session accounts for around 35% of total average forex turnover*, the largest amount relative to its peers. The London forex session overlaps with the New York session. Learn about trading the London forex session here: https://t.co/dWaWQ0MK1V https://t.co/OoHOJCWtdl
  • 🇮🇹 Business Confidence (JAN) Actual: 95.1 Expected: 95.6 Previous: 96.0 https://www.dailyfx.com/economic-calendar#2021-01-28
  • 🇮🇹 Consumer Confidence (JAN) Actual: 100.7 Expected: 100.5 Previous: 101.1 https://www.dailyfx.com/economic-calendar#2021-01-28
  • 🇮🇹 Business Confidence (JAN) Actual: 95.1 Expected: 95.6 Previous: 95.9 https://www.dailyfx.com/economic-calendar#2021-01-28
  • 🇮🇹 Consumer Confidence (JAN) Actual: 100.7 Expected: 100.5 Previous: 102.4 https://www.dailyfx.com/economic-calendar#2021-01-28
EUR/USD Fills 2015 Gap, Bull-Flag Continues to Unfold Ahead of ECB

EUR/USD Fills 2015 Gap, Bull-Flag Continues to Unfold Ahead of ECB

David Song, Strategist

Talking Points:

- EUR/USD Fills 2015 Gap, Bull-Flag Continues to Unfold Ahead of ECB.

- Nikkei (JPN225) Losses to Persist as ‘North Korea Poses a Grave and Growing Threat.

- Sign Up for the DailyFX Trading Webinarsfor an opportunity to discuss potential trade setups.

DailyFX Table

Ticker

Last

High

Low

Daily Change (pip)

Daily Range (pip)

EUR/USD

1.2016

1.2070

1.1956

37

114

EUR/USD may continue to appreciate ahead of the European Central Bank (ECB) meeting on September 7 as the pair finally fills the January-2015 (1.2000 down to 1.1955).

The U.S. dollar remains under pressure following the Kansas City Fed Economic Symposium in Jackson Hole, Wyoming, as the market participants push out bets for the next rate-hike. A look at Fed Fund Futures suggest Chair Janet Yellen and Co. will wait until the June 2018 to implement higher borrowing-costs, and the central bank may highlight a more shallow path for the benchmark interest rate amid the growing uncertainty surrounding the economic outlook.

In contrast, the Euro may face a more bullish fate as the ECB adopts an upbeat tone and appears to be on course to taper the asset-purchase program ahead of the December deadline. In turn, President Mario Draghi and Co. may gradually move away from the easing cycle and alter the monetary policy outlook over the coming months as ‘reflationary forces, which referred to the recovery of inflation from levels below its long-term trend, had replaced risks of deflation.’

See how shifts in EUR/USD retail positioning are impacting trend- Click here to learn more about sentiment!

EUR/USD Daily Chart

EUR/USD Daily Chart

Chart - Created Using Trading View

  • Topside targets remain on the radar for EUR/USD as a bull-flag formation pans out, with the pair initiating a initiates a series of higher highs & lows after breaking of out a near-term range.
  • Another close above the 1.1960 (38.2% retracement) region raises the risk for a run at the 1.2130 (50% retracement) hurdle as the bullish momentum appears to be gathering pace; watching the Relative Strength Index (RSI) as it flirts with overbought territory, with a break above 70 raising the risk for a larger advance in the euro-dollar exchange rate.

Ticker

Last

High

Low

Daily Change

Daily Range

JPN225

19346

19475

19144

129

331

The Nikkei snaps the range-bound price action carried over from the previous week as the U.S. and Japan ‘agree that North Korea poses a grave and growing threat.’

Mounting tensions in Asia-Pacific may continue to drag on in risk sentiment as U.S. President Donald Trump warns ‘all options are on the table’ in dealing with North Korea, and the shift in market behavior may persist over the coming months a growing number of global benchmark equity indices fail to preserve the bullish trends from earlier this year. In turn, JPN225 stands may continue to give back the rebound from the 2017-low (18,193) as the index trades below the 200-Day SMA (19,412) for the first time since the U.S. Presidential election.

JPN225 Daily Chart

JPN225 Daily Chart

Chart - Created Using Trading View

  • Failure to preserve the near-term range keeps the downside targets on the radar, with a close below the 19,280 (23.6% retracement) hurdle opening up the next region of interest around 19,000 (61.8% retracement) handle, followed by the 18,600 (61.8% retracement) to 18,710 (38.2% retracement) zone.
  • Keeping a close eye on the Relative Strength Index (RSI) as it preserves the bearish formation from earlier this month and approaches oversold territory, with a break below 30 raising the risk for a further decline in JPN225.

Retail Sentiment

Retail Sentiment
  • Retail trader data shows 24.9% of traders are net-long EUR/USD with the ratio of traders short to long at 3.02 to 1. In fact, traders have remained net-short since April 18 when EUR/USD traded near 1.07646; price has moved 11.7% higher since then. The number of traders net-long is 1.4% higher than yesterday and 12.4% lower from last week, while the number of traders net-short is 1.1% lower than yesterday and 12.5% higher from last week.
DailyFX Calendar

Click Here for the DailyFX Calendar

--- 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.

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

DISCLOSURES