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
Bullish
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
GBP/USD
Mixed
USD/JPY
Bearish
Gold
Mixed
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
Bitcoin
Mixed
More View more
Real Time News
  • Heads Up:🇺🇸 USD S&P CoreLogic CS 20-City (MoM) SA (DEC) due at 14:00 GMT (15min), Actual: N/A Expected: 0.4% Previous: 0.48% https://www.dailyfx.com/economic-calendar#2020-02-25
  • Heads Up:🇺🇸 USD S&P/Case-Shiller Composite-20 (YoY) (DEC) due at 14:00 GMT (15min), Actual: N/A Expected: 2.85% Previous: 2.55% https://www.dailyfx.com/economic-calendar#2020-02-25
  • Heads Up:🇺🇸 USD S&P/Case-Shiller US Home Price Index (YoY) (DEC) due at 14:00 GMT (15min), Actual: N/A Expected: N/A Previous: 3.54% https://www.dailyfx.com/economic-calendar#2020-02-25
  • Heads Up:🇺🇸 USD House Price Index (MoM) (DEC) due at 14:00 GMT (15min), Actual: N/A Expected: 0.40% Previous: 0.2% https://www.dailyfx.com/economic-calendar#2020-02-25
  • Heads Up:🇺🇸 USD House Price Purchase Index (QoQ) (4Q) due at 14:00 GMT (15min), Actual: N/A Expected: N/A Previous: 1.1% https://www.dailyfx.com/economic-calendar#2020-02-25
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.95%, while traders in USD/CAD are at opposite extremes with 68.84%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/GYoqTAMAbM
  • Recessions can devastate the economy and disrupt the fortunes of individuals, businesses, and investors. But economic decline in the business cycle is inevitable, and your trading can be defined by how you respond to crisis. learn how to prepare here: https://t.co/e4CnobJCss https://t.co/ULBWeviENp
  • Forex Update: As of 13:00, these are your best and worst performers based on the London trading schedule: 🇬🇧GBP: 0.27% 🇯🇵JPY: 0.09% 🇨🇭CHF: 0.07% 🇪🇺EUR: -0.12% 🇦🇺AUD: -0.18% 🇳🇿NZD: -0.36% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/bgklOwtokB
  • RT @Tony_Nyman: Soc Gen - Given the market's new-found #GBP bullishness, positioning and risk that UK/EU trade talks are testing in the wee…
  • $EURUSD resistance, round 2. Higher-lows past few trading days, sellers not yet able to fill the gap. https://t.co/MBuI87th2U
Dollar Slumps as Rebound Falters- Traders Eye Key US Data

Dollar Slumps as Rebound Falters- Traders Eye Key US Data

2011-10-13 22:42:00
Michael Boutros, Technical Strategist
Share:
Dollar_Slumps_as_Rebound_Falters-_Traders_Eye_Key_US_Data_body_Picture_2.png, Dollar Slumps as Rebound Falters- Traders Eye Key US DataDollar_Slumps_as_Rebound_Falters-_Traders_Eye_Key_US_Data_body_Picture_3.png, Dollar Slumps as Rebound Falters- Traders Eye Key US Data

The greenback was weaker at the close of North American trade with the Dow Jones FXCM Dollar Index (Ticker: USDollar) off by 0.29% on the session. Equity markets spent the majority of the day paring early losses after global growth concerns were rekindled on the back of weaker than expected trade data out China. The major averages were mixed at the closing bell with the Dow and the S&P sliding 0.35% and 0.30% respectively, while the NASDAQ managed to close in the black with a gain of 0.60%. The recent rally in equities remains at risk however as the advance fueled by optimism over the European crisis may be over extended at this point. Today cautious investors took some risk off the table but remain poised as we await further developments regarding the ongoing sovereign debt crisis in euro region.

The dollar pared early gains throughout the session as risk assets slowly fought their way back. The index continues to hold above the key 38.2% Fibonacci extension taken from the June 2010 and November 2010 crests at 9745. A hold above this level remains paramount for the greenback with a break risking substantial losses for the reserve currency. Note that daily RSI is now testing support at the 44-level.

Dollar_Slumps_as_Rebound_Falters-_Traders_Eye_Key_US_Data_body_Picture_4.png, Dollar Slumps as Rebound Falters- Traders Eye Key US Data

A closer look at the index shows the dollar holding within a well defined descending channel formation dating back to October 4th. Interim support now rests at the 50% Fibonacci retracement taken from the August 1st advance at 9730 with subsequent floors seen at 9685 and the 61.8% retracement at 9633. Topside resistance holds at the 38.2% retracement at 9825 backed by 9900 and the 23.6% retracement at 9940.

Dollar_Slumps_as_Rebound_Falters-_Traders_Eye_Key_US_Data_body_Picture_5.png, Dollar Slumps as Rebound Falters- Traders Eye Key US Data

The greenback fell against three of the four component currencies highlighted by a 0.53% decline against the Japanese yen. We highlighted the currency’s advance in this morning’s Winners/Losers report with the yen continuing to pare the sharp losses seen yesterday. The USD/JPY pair now rests just above key support at the 38.2% Fibonacci extension taken from the September 9th and October 12th crests at 76.80 (Updated Chart).The aussie and the sterling saw modest advances of 0.11% and 0.53% respectively. The euro was virtually unchanged at the close of trade in New York, sliding a mere 0.05% after rebounding off support at the 1.37-figure early in the session (Updated Chart).

Tomorrow’s economic docket is highlighted by the September advanced retail sales report and the October University of Michigan confidence survey. Consensus estimates call for sales to increase by 0.6%, up from a flat read the previous month, with consumer confidence expected to climb to 60.0 from 59.4. The data has the capacity to fuel the recent shift into risk assets with the dollar likely to remain under pressure should investor appetite continue to improve.

Upcoming Events

Date

GMT

Importance

Release

Expected

Prior

10/14

12:30

LOW

Import Price Index (MoM) (SEP)

-0.4%

-0.4%

10/14

12:30

LOW

Import Price Index (YoY) (SEP)

12.4%

13.0%

10/14

12:30

HIGH

Advance Retail Sales (SEP)

0.6%

0.0%

10/14

12:30

MEDIUM

Retail Sales Less Autos (SEP)

0.2%

0.1%

10/14

12:30

MEDIUM

Retail Sales Less Auto & Gas (SEP)

0.2%

0.1%

10/14

13:55

HIGH

U. of Michigan Confidence (OCT P)

60.0

59.4

10/14

14:00

MEDIUM

Business Inventories (AUG)

0.4%

0.4%

Written by Michael Boutros, Currency Analyst with DailyFX.com

To contact Michael emailmboutros@dailyfx.comor follow him on Twitter @MBForex.

To be added to Michael’s email distribution list, send an email with subject line “Distribution List” to mboutros@dailyfx.com

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

DISCLOSURES

News & Analysis at your fingertips.