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
GBP/USD
Bearish
USD/JPY
Bullish
Gold
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
Oil - US Crude
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
Bitcoin
Mixed
More View more
Real Time News
  • European Opening Calls From IG: #FTSE 7450 -0.09% #DAX 13774 -0.11% #CAC 6103 -0.13% #AEX 628 -0.22% #MIB 25419 -0.23% #IBEX 10067 -0.17% #STOXX 3857 -0.22%
  • Heads Up:🇨🇭 CHF Industrial Output w.d.a. (YoY) (4Q) due at 07:30 GMT (15min), Actual: N/A Expected: N/A Previous: 8.0% https://www.dailyfx.com/economic-calendar#2020-02-20
  • GBP/USD Technical Analysis: British Pound Trend Reversal in Play - https://www.dailyfx.com/forex/technical/home/analysis/gbp-usd/2020/02/20/GBPUSD-Technical-Analysis-British-Pound-Trend-Reversal-in-Play.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Spivak&utm_campaign=twr #GBPUSD #technicalanalysis https://t.co/R74kxDFLc7
  • 🇪🇺 EUR German GfK Consumer Confidence (MAR), Actual: 9.8 Expected: 9.8 Previous: 9.9 https://www.dailyfx.com/economic-calendar#2020-02-20
  • Heads Up:🇪🇺 EUR German GfK Consumer Confidence (MAR) due at 07:00 GMT (15min), Actual: N/A Expected: 9.8 Previous: 9.9 https://www.dailyfx.com/economic-calendar#2020-02-20
  • 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/YZQdz0J9Qx
  • 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/LW8VClzEHx
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.26%, while traders in France 40 are at opposite extremes with 85.07%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/o7bhcPUReq
  • Forex Update: As of 05:00, these are your best and worst performers based on the London trading schedule: 🇨🇭CHF: 0.02% 🇯🇵JPY: 0.00% 🇨🇦CAD: -0.06% 🇬🇧GBP: -0.08% 🇦🇺AUD: -0.39% 🇳🇿NZD: -0.40% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/9hDuPgcn3f
  • Indices Update: As of 05:00, these are your best and worst performers based on the London trading schedule: US 500: -0.10% Wall Street: -0.12% France 40: -0.22% Germany 30: -0.28% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/utmcDfNHPB
US Dollar Consolidation Underway- Weakness to be Short-Lived

US Dollar Consolidation Underway- Weakness to be Short-Lived

2011-12-15 22:48:00
Michael Boutros, Technical Strategist
Share:
US_Dollar_Consolidation_Underway-_Weakness_to_be_Short-Lived_body_Picture_2.png, US Dollar Consolidation Underway- Weakness to be Short-LivedUS_Dollar_Consolidation_Underway-_Weakness_to_be_Short-Lived_body_Picture_3.png, US Dollar Consolidation Underway- Weakness to be Short-Lived

The greenback snapped three days of advances today with the Dow Jones FXCM Dollar Index (Ticker: USDollar) closing off by 0.19% on the session. Stronger-than-expected US economic data and a well subscribed Spanish bond auction fueled a rally in risk that carried over into North American trade. Equity markets spend the majority of the session drifting lower however as the rally quickly lost steam, suggesting investors are remaining cautious as the European crisis and concerns of a slowdown in China threaten global growth prospects. The Dow, the S&P, and the NASDAQ closed modestly higher on the session with an advance of 0.38%, 0.32%, and 0.07% respectively.

As noted in yesterday’s USD Trading report, the dollar remains in consolidation after testing key resistance at the 76.4% Fibonacci extension taken form the August 1st and October 27th troughs at 10,070. Strong resistance holds here with a topside break exposing targets at the October highs at 10,140. Daily support rests at the 61.8% extension at 9950. As expected, the relative strength index did rebound off RSI resistance with a topside break likely to see the dollar gain enough momentum to breach the 10,070 mark with such a scenario eyeing resistance targets at the October highs at 10,140.

US_Dollar_Consolidation_Underway-_Weakness_to_be_Short-Lived_body_Picture_4.png, US Dollar Consolidation Underway- Weakness to be Short-Lived

An hourly chart shows the index failing to hold above the 76.4% extension with a break back below finding solace just above the 10,035 support level. A break below this level eyes subsequent floors at 10,000, the 61.8% extension at 9950, and the 9900 level. Our medium-term bias remains weighted to the topside as traders seek refuge in the perceived safety of the reserve currency.

US_Dollar_Consolidation_Underway-_Weakness_to_be_Short-Lived_body_Picture_5.png, US Dollar Consolidation Underway- Weakness to be Short-Lived

The greenback fell against all four component currencies highlighted by a 0.29% decline versus the British pound. Both the pound and the euro were well supported today after a Spanish bond auction was well received by investors and temporarily eased debt concerns. Although the yen was weaker against most of its counterparts, it was stronger against the dollar as risk-on flows saw dollar losses outpace those of the yen with the low yielder advancing 0.21% against the greenback. The aussie was the worst performer of the lot with an advance of just 0.09% on the session as traders remained reluctant to move into the aussie amid continued weakness in commodity prices. As noted in today’s AUD/USD Scalp Report, ongoing growth concerns, specifically as it pertains to China, continue to weigh on the aussie with the high yielder likely to remain under pressure in the coming days.

Tomorrow’s economic docket is highlighted by the November consumer price index with consensus estimates calling for prices to hold at an annualized rate of 3.5% while core prices are expected to hold at 2.1% y/y. The dollar is likely to remain well supported with an at-expectation print or better after the Fed made no mention of further quantitative easing at this week’s FOMC rate decision. In the meantime the greenback will continue to be a barometer of broader market sentiment with a shift back into risk aversion likely to see the dollar make another attempt at a breach above the 10,070 level.

Upcoming Events

Date

GMT

Importance

Release

Expected

Prior

12/16

13:30

MEDIUM

Consumer Price Index (MoM) (NOV)

0.1%

-0.1%

12/16

13:30

HIGH

Consumer Price Index (YoY) (NOV)

3.5%

3.5%

12/16

13:30

MEDIUM

Consumer Price Index Ex Food & Energy (MoM) (NOV)

0.1%

0.1%

12/16

13:30

HIGH

Consumer Price Index Ex Food & Energy (YoY) (NOV)

2.1%

2.1%

12/16

13:30

LOW

Consumer Price Index n.s.a. (NOV)

-

226.421

12/16

13:30

LOW

Consumer Price Index Core Index s.a. (NOV)

-

226.444

--- Written by Michael Boutros, Currency Analyst with DailyFX.com

To contact Michael email mboutros@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.