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
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
Oil - US Crude
Bearish
Wall Street
Bullish
Gold
Bearish
GBP/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
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
  • Tune in to @JMcQueenFX's #webinar at 1:45 AM ET/5:45 AM GMT for live coverage of the UK #GDP. Register here: https://t.co/bpZzPpx2yb https://t.co/buaGdvXIs7
  • 🇯🇵 Industrial Production YoY Final (MAY) Actual: -26.3% Expected: -25.9% Previous: -15% https://www.dailyfx.com/economic-calendar#2020-07-14
  • $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/EoFBiVss6y
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.69%, while traders in US 500 are at opposite extremes with 74.06%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/KEifgdky1z
  • Forex Update: As of 04:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: 0.11% 🇦🇺AUD: -0.01% 🇬🇧GBP: -0.02% 🇨🇭CHF: -0.04% 🇳🇿NZD: -0.10% 🇨🇦CAD: -0.10% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/tdHfhlRoON
  • Heads Up:🇯🇵 Industrial Production YoY Final (MAY) due at 04:30 GMT (15min) Expected: -25.9% Previous: -15% https://www.dailyfx.com/economic-calendar#2020-07-14
  • Indices Update: As of 04:00, these are your best and worst performers based on the London trading schedule: US 500: 0.09% Wall Street: 0.08% FTSE 100: -1.47% France 40: -1.61% Germany 30: -1.83% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/8NLFFxuuXr
  • RBNZ Credit Conditions Survey - New Zealand banks report a decline in demand for credit during first half of 2020. - Banks indicate lending standards are likely to tighten.
  • Japanese candlesticks are a popular charting technique used by many traders, and the shooting star candle is no exception. Learn about the shooting star candlestick and how to trade it here: https://t.co/OjTZOQEytM https://t.co/0KdF1bvOXW
  • 🇨🇳 Balance of Trade (JUN) Actual: $46.42B Expected: $58.6B Previous: $62.93B https://www.dailyfx.com/economic-calendar#2020-07-14
USD Index Eyes Critical Resistance as Dow Tests 1300

USD Index Eyes Critical Resistance as Dow Tests 1300

2012-02-21 22:49:00
Michael Boutros, Strategist
Share:
USD_Index_Eyes_Critical_Resistance_as_Dow_Tests_1300_body_Picture_5.png, USD Index Eyes Critical Resistance as Dow Tests 1300USD_Index_Eyes_Critical_Resistance_as_Dow_Tests_1300_body_Picture_6.png, USD Index Eyes Critical Resistance as Dow Tests 1300

The greenback is firmer at the close of North American trade with the Dow Jones FXCM Dollar Index (Ticker: USDOLLAR) higher by 0.33% on the session. News that Greece had secured the next tranche of bailout funds failed to further stoke market sentiment with equity markets closing mixed on the session after paring early advances that saw the Dow test key psychological resistance at 13,000. The Dow and the S&P managed to post marginal gains of 0.12% and 0.07% respectively, with NASDAQ off by 0.11% on the day. Markets are now in a vulnerable state with today’s price action lacking conviction as investors continued to question stability in Europe and ongoing concerns regarding rising crude prices which hit a nine-month high above the $106-mark. The greenback steadily advanced under the radar throughout the session with the index now coming within striking distance of key resistance.

The dollar closed above the 9800 soft support target before pushing higher with the index looking to test the key convergence of channel resistance, the 100-day moving average, and the 50% Fibonacci extension taken from the August 1st and October 27thtroughs at 9850. This level remains paramount for further dollar advances with a topside break eyeing subsequent resistance targets at the 50-day moving average at 9880 and the 9900-level. Note that a break above former RSI support dating back to the October 27thlow the index may fuel the index with enough momentum to mount the 9850 level.

USD_Index_Eyes_Critical_Resistance_as_Dow_Tests_1300_body_Picture_7.png, USD Index Eyes Critical Resistance as Dow Tests 1300

We’ve adjusted our ascending channel formation published last week to accommodate more recent price action with interim support holding at 9820. A break below channel support eyes subsequent support targets at 9795, 9775 and the 38.2% Fibonacci extension at 9755. Topside interim resistance holds at 9850 backed by 9880, 9900 and the 61.8% extension at 9950. A catalyst of some sort may be necessary to boost the dollar here with price action over the next 24-hours likely to remain in consolidation in the absence of any further headline risk.

USD_Index_Eyes_Critical_Resistance_as_Dow_Tests_1300_body_Picture_8.png, USD Index Eyes Critical Resistance as Dow Tests 1300

The greenback advanced against all the component currencies highlighted by a 0.86% advance against the Australian dollar which moved a nearly 94% of its daily average true range. The aussie declined against all its major counterparts with the high yielder breaking its tight correlation with equity markets to close markedly lower on the session. The strongest performer of the lot was the euro which held its ground with a loss of just 0.06% as traders took to the sidelines awaiting further developments with regards to the terms by which Greece would receive the €130 billion in bailout funds. For complete euro and aussie scalp targets refer to today’s Winners/Losers report.

Tomorrow’s US economic docket is highlighted January existing home sales report with consensus estimates calling for sales to have increased by 1.1% m/m, up from a previous read of 5.0% m/m. The print would mark the lowest monthly read on home sales since September when sales dipped by 3% m/m. With many prominent figures calling for the bottom of the housing market, traders will be closely eyeing the data with a stronger-than-expected print likely to further fuel the risk trade at the expanse of the dollar.

Upcoming Events

Date

GMT

Importance

Release

Expected

Prior

2/22

15:00

MEDIUM

Existing Home Sales (MoM) (JAN)

1.1%

5.0%

2/22

15:00

MEDIUM

Existing Home Sales (JAN)

4.65M

4.61M

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

Join Michael tomorrow morning for a Live Scalping Webinar at 1330GMT (8:30ET)

To contact Michael email mboutros@dailyfx.com or follow him on Twitter @MBForex

To be added to Michael’s distribution list, send an email with the subject line “Distribution List”

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

DISCLOSURES

News & Analysis at your fingertips.