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
  • The Australian Dollar and New Zealand Dollar tend to rise with stocks. They have recently fallen despite gains in the #SP500. What does this mean for $AUDUSD and $NZDUSD ahead? #AUD #NZD #RBA #RBNZ - https://www.dailyfx.com/forex/fundamental/article/special_report/2020/01/17/AUDUSD-NZDUSD-Outlook-Looks-Past-Stocks-to-Rate-Cut-Bets.html?CHID=9&QPID=917702 https://t.co/ddf2fV7Kyl
  • A few snippets from today's commentary. Check out the link below for the full story (via @DailyFX). https://t.co/I31tuq764r https://t.co/x0BaiOFA1P
  • 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/e2YrN3dBrl
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 98.00%, while traders in France 40 are at opposite extremes with 79.59%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/UL7hqSD2Ki
  • US Dollar Forecast: $USD Lacking Impetus Ahead of Consumer Sentiment #Forex traders shift focus away from US-China trade deal headlines - perhaps toward the monthly release of #ConsumerSentiment data for volatility and clues on the Greenback's next move https://www.dailyfx.com/forex/fundamental/us_dollar_index/usd_trading_today/2020/01/16/us-dollar-forecast-usd-lacking-impetus-ahead-of-consumer-sentiment.html
  • Forex Update: As of 05:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.11% 🇦🇺AUD: -0.02% 🇯🇵JPY: -0.03% 🇨🇭CHF: -0.05% 🇬🇧GBP: -0.06% 🇨🇦CAD: -0.07% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/Kxcb9EtIWb
  • Indices Update: As of 05:00, these are your best and worst performers based on the London trading schedule: Germany 30: 0.45% France 40: 0.26% Wall Street: 0.07% US 500: 0.00% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/I5YIsKQAog
  • 🇯🇵 JPY Tertiary Industry Index (MoM) (NOV), Actual: 1.3% Expected: 1.0% Previous: -5.2% https://www.dailyfx.com/economic-calendar#2020-01-17
  • The $JPY has weakened as a bounce-back in risk appetite saps haven-asset demand. However, the old uptrend line still provides clear resistance. Get your market update from @DavidCottleFX HERE:https://t.co/IMhgQ9jbF9 https://t.co/I7087olftk
  • Heads Up:🇯🇵 JPY Tertiary Industry Index (MoM) (NOV) due at 04:30 GMT (15min), Actual: N/A Expected: 1.0% Previous: -4.6% https://www.dailyfx.com/economic-calendar#2020-01-17
Equity Correlation Begins to Decouple as USD Tests Key Resistance

Equity Correlation Begins to Decouple as USD Tests Key Resistance

2012-03-13 21:23:00
Michael Boutros, Technical Strategist
Equity_Correlation_Begins_to_Decouple_as_USD_Tests_Key_Resistance_body_Picture_4.png, Equity Correlation Begins to Decouple as USD Tests Key ResistanceEquity_Correlation_Begins_to_Decouple_as_USD_Tests_Key_Resistance_body_Picture_3.png, Equity Correlation Begins to Decouple as USD Tests Key Resistance

The greenback is markedly higher at the close of North American trade with the Dow Jones FXCM Dollar Index (Ticker: USDOLLAR) advancing 0.23% on the session after moving a full 116% of its daily average true range. Today’s FOMC policy statement offered further support for the dollar’s advance after the Fed acknowledged continued improvement in US economic data while citing that recent financial market strains have eased. The remarks leave little room for further dollar diluting quantitative easing measures and as such the pressure on the greenback should remain limited as speculation for QE3 subside. Equity markets were substantially higher at the close with the Dow, the S&P, and NASDAQ surging 1.68%, 1.81%, and 1.88% respectively as US Treasuries sold off, pushing up yields across the curve.

The dollar saw a test of key trendline resistance dating back to the October 4th high at 10,035 early in the session. This level remains paramount for the greenback with a breach here eyeing the 78.6% Fibonacci extension taken from the August 1th and October 27th troughs at 10,080 and the October high at 10,134. Daily support now rests with the 61.8% extension at 9945. Not that the daily relative strength index continues to hold above former RSI resistance with the slope suggesting the dollar could continue to gain traction over the coming days.

Equity_Correlation_Begins_to_Decouple_as_USD_Tests_Key_Resistance_body_Picture_2.png, Equity Correlation Begins to Decouple as USD Tests Key Resistance

An hourly chart shows the index breaking above the psychological 10,000 mark before encountering soft resistance at the 10,030 level. A breach here eyes interim topside targets at 10,055 and the 78.6% extension at 10,080. Interim support rests at 9980 backed by the 61.8% extension at 9945, 9920, and the 9900-mark. Our medium-to-long term outlook for the dollar remains weighted to the topside noting the possibility for a correction of some magnitude after testing key trendline resistance in intra-day trade.

Equity_Correlation_Begins_to_Decouple_as_USD_Tests_Key_Resistance_body_Picture_1.png, Equity Correlation Begins to Decouple as USD Tests Key Resistance

The greenback advanced against two of the four component currencies highlighted by a 0.93% advance against the Japanese yen. The USD/JPY has continued to strengthen with today’s FOMC rate decision fueling the pair with enough momentum to break above key Fibonacci resistance at 82.80. For complete scalp targets on the yen refer to this morning’s Winners/Losers report. The pound was the strongest performer of the lot with an advance of 0.31% as stronger-than-expected trade balance data showed the national deficit contracting January. We remain neutral on the sterling at these levels noting key daily support at the 1.56-figure.

Tomorrow’s economic docket offers little in the way of tradable event risk with Fed Chairman Ben Bernanke’s speech before community bankers in Nashville Tennessee topping the calendar. Traders will be lending a keen ear to the Bernanke’s remarks in the wake of today’s FOMC statement which offered little for traders to sink their teeth into. Again we note the shifting dynamic of the greenback beginning to react favorably to positive data flow out of the US with the last couple of sessions giving us further conviction for this shift to gather pace later on this year. The dollar is likely to remain well supported for now with a pullback in the index offering favorable long entries as we look for a break above the key trendline resistance noted earlier.

Upcoming Events










Import Price Index (MoM) (FEB)






Import Price Index (YoY) (FEB)






Current Account Balance (4Q)






Fed Chairman Ben Bernanke Speaks on U.S. Economy



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

Join Michael Tomorrow morning for Live Scalping Session at 1230GMT (8:30ET)

To contact Michael email mboutros@dailyfx.com or follow him on Twitter @MBForex for the latest charts and commentary

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.


News & Analysis at your fingertips.