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
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
More View more
Real Time News
  • Join our analysts for live coverage of all major market-moving economic data from around the world at the DailyFX Webinars. https://www.dailyfx.com/webinars?re-author=Cottle?utm_source=Twitter&utm_medium=Cottle&utm_campaign=twr
  • Have you joined @DailyFX @facebook group yet? Discuss your #forex strategies and brush up on your skills with us here: https://t.co/jtY1G7g8yx https://t.co/VJmCmfNlde
  • European Opening Calls From IG: #FTSE 7425 +0.58% #DAX 13747 +0.48% #CAC 6094 +0.61% #AEX 628 +0.46% #MIB 25382 +0.63% #IBEX 10042 +0.36% #STOXX 3856 +0.49%
  • The $GBP recovered some lost ground against the US Dollar but a break of key support on the way lower from 12-year resistance points to a bearish bias. Get your market update from @IlyaSpivak here: https://t.co/RxfVeYlGxi https://t.co/82P6gZJeDy
  • $USDCAD may extend declines while $EURUSD turns higher based on trader positioning signals. What is the outlook for the Canadian Dollar and #Euro incorporating IG Client Sentiment? #CAD - https://www.dailyfx.com/forex/fundamental/article/special_report/2020/02/19/USDCAD-Outlook-Bearish-EURUSD-Forecast-Bullish-on-Positioning.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/ZiW77qolR2
  • Hey, traders 👋 do you want live AMAS with our analysts, market updates and tools to improve your trading strategy? Join us now on Instagram! 👉 https://t.co/pHGzVMqsC4 https://t.co/LTuJok49Ac
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.98%, while traders in France 40 are at opposite extremes with 81.87%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/d3YBidnCIl
  • Forex Update: As of 05:00, these are your best and worst performers based on the London trading schedule: 🇦🇺AUD: 0.10% 🇨🇦CAD: 0.10% 🇳🇿NZD: 0.09% 🇬🇧GBP: 0.03% 🇨🇭CHF: -0.01% 🇯🇵JPY: -0.15% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/T3eOx2Lw1X
  • Indices Update: As of 05:00, these are your best and worst performers based on the London trading schedule: France 40: 0.63% Germany 30: 0.62% Wall Street: 0.28% US 500: 0.27% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/7P5zkqlgMm
  • The #Euro may retrace higher before resuming a selloff that brought the single currency to the lowest level in close to three years against the US Dollar. Get your market update from @IlyaSpivak here: https://t.co/6tE2Xibkiw https://t.co/vfFbt3Q7NT
EURUSD Rate Reverses Ahead of Monthly-Low Following Fed Symposium

EURUSD Rate Reverses Ahead of Monthly-Low Following Fed Symposium

2019-08-26 08:00:00
David Song, Currency Strategist

EUR/USD Rate Talking Points

EURUSD retraces the decline from earlier this month even as Federal Reserve officials tame speculation for a rate easing cycle, and the exchange rate may continue to consolidate over the remainder of the month amid the failed attempt to test the August-low (1.1027).

EURUSD Rate Reverses Ahead of Monthly-Low Following Fed Symposium

EURUSD catches a bid following the Fed Economic Symposium in Jackson Hole, Wyoming even though Chairman Jerome Powellwarns monetary policy “cannot provide a settled rulebook for international trade.”

The comments suggest the Federal Open Market Committee (FOMC) is in no rush to implement lower interest rates, and it remains to be seen if the central bank will reverse the four rate hikes from 2018 as the US economy shows little indications of an imminent recession.

In fact, recent remarks from Kansas City Fed President Esther George, a 2019-voting member on the FOMC, indicate that the central bank will revert back to a wait-and-see approach as the policymaker insist that “we’re in a good place as long as the consumer can continue to pull the economy forward.”

Image of DailyFX economic calendar

In turn, Fed officials may closely watch the fresh updates to the Durable Goods Orders report as demand for large-ticket items is expected to increase 1.2% in July after expanding 1.0% the month prior.

Image of Fed Fund futures

A positive development may encourage the FOMC to buy more time after delivering a rate cut in July, but signs of a slowing economy may produce headwinds for the US Dollar as Fed Fund futures now reflect expectations for at least a 25bp reduction on September 18.

As a result, the FOMC may have little choice but to insulate the economy from the shift in trade policy, and the central bank may continue to adjust the forward guidance as Fed officials are slated to update the Summary of Economic Projections (SEP) in September.

With that said, the monthly opening range sits on the radar for EURUSD, and recent price action raises the risk for a larger rebound in the exchange rate amid the failed attempt to test the August-low (1.1027).

Sign up and join DailyFX Currency Strategist David Song LIVE for an opportunity to discuss key themes and potential trade setups surrounding foreign exchange markets.

EUR/USD Rate Daily Chart

Image eurusd daily chart

Source: Trading View

  • The broader outlook for EURUSD is clouded with mixed signals as the exchange rate clears the May-low (1.1107) following the Federal Reserve rate cut in July, with the 1.1100 (78.6% expansion) handle no longer offering support.
  • Will keep a close eye on the Relative Strength Index (RSI) as the oscillator comes up against trendline support, with a break of the bearish structure raising the risk a larger rebound in EURUSD.
  • The failed attempt to test the August-low (1.1027) has pushed EURUSD back above the 1.1140 (78.6% expansion) pivot, with the Fibonacci overlap around 1.1190 (38.2% retracement) to 1.1220 (78.6% retracement) now on the radar.
  • Next area of interest comes in around 1.1270 (50% expansion) to 1.1290 (61.8% expansion) followed by the 1.1340 (38.2% expansion) region.

For more in-depth analysis, check out the 3Q 2019 Forecast for Euro

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 markets the DailyFX team is watching? Download and review the Top Trading Opportunities for 2019.

--- Written by David Song, Currency Strategist

Follow me on Twitter at @DavidJSong.

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


News & Analysis at your fingertips.