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.

Free Trading Guides
EUR/USD
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
Oil - US Crude
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
Wall Street
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
Gold
Mixed
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 97.14%, while traders in US 500 are at opposite extremes with 77.59%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/7Ncbbi97M9
  • Heads Up:🇵🇱 GDP Growth Rate YoY Final due at 08:00 GMT (15min) Previous: 3.2% https://www.dailyfx.com/economic-calendar#2020-05-29
  • Heads Up:🇵🇱 GDP Growth Rate QoQ Final due at 08:00 GMT (15min) Previous: 0.2% https://www.dailyfx.com/economic-calendar#2020-05-29
  • Heads Up:🇮🇹 GDP Growth Rate QoQ Final due at 08:00 GMT (15min) Expected: -4.7% Previous: -0.3% https://www.dailyfx.com/economic-calendar#2020-05-29
  • Heads Up:🇮🇹 GDP Growth Rate YoY Final due at 08:00 GMT (15min) Expected: -4.8% Previous: 0.1% https://www.dailyfx.com/economic-calendar#2020-05-29
  • China's Foreign Ministry says China will take countermeasures to any interference on internal affairs
  • 🇸🇪 GDP Growth Rate YoY Final Actual: 0.4% Expected: 0.5% Previous: 0.7% https://www.dailyfx.com/economic-calendar#2020-05-29
  • 🇸🇪 GDP Growth Rate QoQ Final Actual: 0.1% Expected: -0.6% Previous: 0.2% https://www.dailyfx.com/economic-calendar#2020-05-29
  • Commodities Update: As of 07:00, these are your best and worst performers based on the London trading schedule: Silver: 0.28% Gold: 0.10% Oil - US Crude: -2.05% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/mkIbEfNzBd
  • Forex Update: As of 07:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: 0.44% 🇦🇺AUD: 0.29% 🇪🇺EUR: 0.22% 🇨🇭CHF: 0.13% 🇳🇿NZD: 0.05% 🇨🇦CAD: -0.05% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/wBltp4UJfg
Upbeat 4Q Euro-Zone GDP Report to Curb EUR/USD Weakness

Upbeat 4Q Euro-Zone GDP Report to Curb EUR/USD Weakness

2018-01-29 18:00:00
David Song, Strategist
Share:

FX Talking Points:

- USD/CAD RSI Divergence Takes Shape Ahead of Month-End Trade.

- Upbeat 4Q Euro-Zone GDP Report to Curb EUR/USD Weakness.

DailyFX TableUSD/CAD Table

USD/CAD may face range-bound conditions going into the end of the month as market attention turns to the Federal Open Market Committee (FOMC) interest rate decision on January 31.

The fresh remarks from FOMC may sway the near-term outlook for USD/CAD as the committee appears to be on track to further normalize monetary policy over the coming months, and Fed officials may prepare U.S. households and businesses for a March rate-hike as most participants support ‘a gradual approach to raising the target range.’ In turn, a hawkish policy statement may spur a bullish reaction in dollar-loonie, with the pair at risk of staging a near-term rebound especially as the Bank of Canada (BoC) implements a dovish-rate hike at its first meeting for 2018.

Keep in mind, the broader outlook for USD/CAD remains tilted to the downside as the pair snaps the range from earlier this month, while the Relative Strength Index (RSI) continues to track the bearish formation carried over from November, but thenear-term outlook remains clouded with mixed signals as the Relative Strength Index (RSI) persistently holds above 30 even as the exchange rate sits near the monthly-low (1.2282).

USD/CAD Daily Chart

USD/CAD Daily Chart

Interested in trading? Review the ‘Traits of a Successful Trader’ series on how to effectively use leverage along with other best practices that any trader can follow.

  • Recent price action highlights the risk for a more meaningful rebound in USD/CAD as the pair snaps the string of lower-lows from earlier this month following the series of failed attempts to test the 1.2210 (50% expansion) to 1.2250 (50% retracement).
  • Keeping a close eye on the RSI as it hold above oversold territory and appears to be deviating with price; first topside region of interest comes in around 1.2440 (23.6% expansion) to 1.2510 (78.6% retracement) followed by the former-support zone around 1.2620 (50% retracement).
EUR/USD Table

EUR/USD continues to pullback from the 2018-high (1.2537), but the fresh developments coming out of the monetary union may curb the recent weakness in EUR/USD as the 4Q Euro-Zone Gross Domestic Product (GDP) report is anticipated to show an uptick in the growth rate.

The euro-area is expected to grow an annualized 2.7 % after expanding 2.6% during the three-months through September, and an upbeat GDP print may heighten the appeal of the single-currency as it encourages the European Central Bank (ECB) to move away from its easing-cycle.

In response, the Governing Council may continue to prepare European households and businesses for a less-accommodative stance as ‘incoming information confirms a robust pace of economic expansion, which accelerated more than expected in the second half of 2017,’ and the change in the euro-area monetary policy outlook may continue to fuel the broader shift in EUR/USD behavior as the ECB appears to be on track to conclude the quantitative easing (QE) program in September.

Keep in mind, recent remarks from ECB officials suggest the central bank will try to jawbone the single-currency as ‘the recent volatility in the exchange rate represents a source of uncertainty,’ with recent price action warns of a near-term pullback in the euro-dollar exchange rate as the bullish momentum carried over from late last year appears to be getting exhausted. Want to know what other currency pairs the DailyFX team is watching? Download and review the Top Trading Opportunities for 2018.

EUR/USD Daily Chart

EUR/USD Daily Chart

Interested in having a broader discussion on current market themes? Sign up and join DailyFX Currency Analyst David Song LIVE for an opportunity to discuss potential trade setups!

  • Will continue to watch the topside targets for EUR/USD as long as the Relative Strength Index (RSI) holds above 70, but still waiting for a close above 1.2430 (50% expansion) to open up the next topside hurdle around 1.2640 (61.8% expansion) to 1.2650 (38.2% retracement).
  • Broader outlook for EUR/USD remains constructive as both price and the RSI extend the bullish formations from late last year, with the next area of interest coming in around 1.2860 (50% expansion) to 1.2930 (78.6% expansion).
  • Need to keep a close eye on the RSI as it appears to be flattening out, with the oscillator at risk of flashing a textbook sell-signal if it slips below 70.
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

News & Analysis at your fingertips.