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
Bullish
Oil - US Crude
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
Wall Street
Mixed
Gold
Mixed
GBP/USD
Mixed
USD/JPY
Bullish
More View more
Real Time News
  • Consolidation or bull flag? A bull flag is a continuation pattern that occurs as a brief pause in the trend following a strong price move higher. Learn how to better spot these formations here: https://t.co/yOEvLjKnct https://t.co/qP2PbS4dsY
  • Are you new to trading? Technical analysis of charts aims to identify patterns and market trends by utilising different forms of technical chart types and other chart functions. Get a refresher on technical analysis or begin building your knowledge here: https://t.co/qV3c7a4YR3 https://t.co/POGWDIkqqz
  • USD hegemony is at risk thanks to changes in the global economy and the long-term consequences of the US-China trade war. Get your market update from @CVecchioFX here: https://t.co/5GO9UrvO4y https://t.co/H76jNJJxU5
  • Did you know a Doji candlestick signals market indecision and the potential for a change in direction. What are the top five types of Doji candlesticks? Find out https://t.co/c51s3IBcEu https://t.co/1TiEWCbJ6t
  • Use this technical analysis pattern recognition skills test to sharpen your knowledge: https://t.co/Qgz89PTxnu https://t.co/fN2mfHgpON
  • The formation of several bullish technical patterns suggests that the haven-associated Japanese Yen is at risk of further losses against the Euro and Australian Dollar. Get your market update from @DanielGMoss here:https://t.co/qxQwHgD9Ey https://t.co/ym73tgtHLn
  • Natural gas is moving lower after weather models pointed to warmer-than-average temperatures across much of the US. Get your market update from @FxWestwater here:https://t.co/HuXPXu5PFU https://t.co/ytHqOoHnxQ
  • Gold and silver prices may continue to rise in the coming months on the back of falling real rates of return and the prospect of additional fiscal support under a Biden administration. Get your market update from @DanielGMoss here:https://t.co/OMNoNHn2vZ https://t.co/155l4SQU6P
  • Will the Swiss Franc find reprieve after recent losses against the Canadian and New Zealand Dollars as NZD/CHF and CAD/CHF uptrends face key chart barriers? Find out from @FxWestwater here:https://t.co/c89gcaNhTt https://t.co/vkLRsG8KEn
  • The Australian Dollar may be at risk of losses against the New Zealand Dollar after an unexpectedly high NZ inflation reading sent AUD/NZD towards challenging short-term rising trend support. Get your $AUD market update from @ddubrovskyFX here:https://t.co/JoaUMTv80S https://t.co/Hl4I8Gl7Ez
GBP/USD Breaks Out Amid Waning Bets for Four Fed Rate-Hikes in 2018

GBP/USD Breaks Out Amid Waning Bets for Four Fed Rate-Hikes in 2018

David Song, Strategist

FX Talking Points:

- GBP/USD Extends Bullish Sequence Following Lackluster Updates to U.S. Consumer Price Index (CPI). Topside Targets on the Radar as Holding Pattern Snaps.

- USD/JPY Clears March Opening Range Ahead of Bank of Japan (BoJ) Minutes. Relative Strength Index (RSI) Sits at Trendline Resistance.

DailyFX Table

GBP/USD EXTENDS BULLISH SEQUENCE FOLLOWING LACKLUSTER UPDATES TO U.S. CONSUMER PRICE INDEX (CPI)

GBP/USD Table

GBP/USD extends the recent series of higher highs & lows as fresh data prints coming out of the U.S. economy dampen bets for four Fed rate-hikes in 2018, and the pair may continue to retrace the decline from earlier this year as it appears to be breaking out of a near-term holding pattern.

Key developments coming out of the U.S. may continue to influence the near-term outlook for GBP/USD as market attention turns to the Federal Open Market Committee (FOMC) interest rate decision on tap for March 21, and the fresh updates to the U.S. Consumer Price Index (CPI) may encourage Chairman Jerome Powell and Co. to deliver a dovish rate-hike especially as the core rate of inflation holds steady at an annualized 1.8% for the third consecutive month in February.

Lackluster data prints coming out of the U.S. economy may encourage a growing number of Fed officials to adopt a less-hawkish tone as ‘a couple of members expressed concern about the outlook for inflation, seeing little evidence of a meaningful improvement in the underlying trend in inflation, measures of inflation expectations, or wage growth.’ As a result, the FOMC may have little choice but to tame expectations for a more aggressive hiking-cycle as the central bank still struggles to achieve the 2% target for inflation.

With that said, topside targets are coming back on the radar for GBP/USD as it snaps the monthly range, and the broader shift in pound-dollar behavior may continue to take shape in 2018 as it appears to be breaking out of a wedge/triangle formation.

GBP/USD Daily Chart

GBP/USD Daily Chart
  • GBP/USD appears to be extending the bullish trend carried over from late last year after failing to break/close below the 1.3690 (61.8% expansion) to 1.3700 (38.2% expansion) region, with the Relative Strength Index (RSI) reflecting a similar behavior.
  • A close above 1.3970 (50% expansion) raises the risk for a move back towards the 1.4100 (100% expansion) handle, with the next topside hurdle coming in around 1.4310 (61.8% expansion) to 1.4350 (78.6% retracement), which lines up with the 2018-high (1.4346).

USD/JPY CLEARS MARCH OPENING RANGE AHEAD OF BANK OF JAPAN (BOJ) MINUTES

USD/JPY Table

USD/JPY climbs to a fresh monthly-high (107.29) ahead of the Bank of Japan (BoJ) Minutes, with the pair still at risk for a more meaningful rebound as the Relative Strength Index (RSI) continues to threaten the bearish formation carried over from late last year.

The detailed account of the BoJ’s March meeting may do little to derail the recent advance in USD/JPY as Governor Haruhiko Kuroda & Co. persistently endorse a wait-and-see approach for monetary policy, and more of the same from the central bank is likely to keep dollar-yen bid especially as the Federal Reserve is widely expected to deliver a 25bp rate-hike next week. However, signs of a growing rift within the BoJ may tame the near-term advance in the exchange rate as the central bank appears to be approaching the end of its easing-cycle.

Keep in mind, failure to preserve the monthly opening range may fuel the advance from the 2018-low (105.25) as the pair breaks out of the downward trend from earlier this year, and the Relative Strength Index (RSI) may highlight a similar dynamic as the oscillator sits at trendline resistance and is on the cusp of flashing a bullish trigger.

USD/JPY Daily Chart

USD/JPY Daily Chart
  • Still waiting for a bullish RSI trigger paired with a close above the 106.70 (38.2% retracement) to 107.20 (61.8% retracement) region to favor a larger advance in USD/JPY.
  • Next topside hurdle comes in around 108.30 (61.8% retracement) to 108.40 (100% expansion) followed by the 109.40 (50% retracement) to 110.00 (78.6% expansion) area.
  • However, lack of momentum to snap the bearish RSI formation may produce range-bound conditions, with a break/close below 105.40 (50% retracement) bringing the downside targets back on the radar for USD/JPY.

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!

DailyFX Calendar

Additional Trading Resources

Are you looking to improve your trading approach? Review the ‘Traits of a Successful Trader’ series on how to effectively use leverage along with other best practices that any trader can follow.

Want to know what other currency pairs the DailyFX team is watching? Download and review the Top Trading Opportunities for 2018.

--- 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