News & Analysis at your fingertips.

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. See our updated Privacy Policy here.

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
Subscribe
Please try again
EUR/USD
Bearish
Oil - US Crude
Mixed
Wall Street
Mixed
Gold
Mixed
GBP/USD
Bearish
USD/JPY
Mixed
More View more
Real Time News
  • UK PM Spokesman says the UK is committed to the triple lock on pensions government made a commitment not to increase rate of income tax
  • Heads Up:🇧🇷 BCB Focus Market Readout due at 11:30 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-06-21
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Gold are long at 86.01%, while traders in France 40 are at opposite extremes with 69.54%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/1KacM0SzUu
  • Please join @CVecchioFX at 7:30 EST/11:30 GMT for a webinar where you can develop a strategy for a major risk event. Register here: https://t.co/D8DAmLpkuS https://t.co/cXy5YF2QOe
  • Commodities Update: As of 10:00, these are your best and worst performers based on the London trading schedule: Gold: 1.03% Silver: 0.71% Oil - US Crude: 0.06% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/c1PEiidgUD
  • Forex Update: As of 10:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.47% 🇬🇧GBP: 0.42% 🇦🇺AUD: 0.35% 🇪🇺EUR: 0.28% 🇨🇭CHF: 0.18% 🇯🇵JPY: 0.07% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/TTQNPmO5N9
  • It seems the markets are riding high, but risk is always lurking around the corner. Consider your escape plan before you find yourself in collapsing market. What are the top havens for different conditions in 2021? Find out from @JohnKicklighter here: https://t.co/1oeXWEsJkb https://t.co/uXSofbvppi
  • Iranian President Elect Raisi says we want verification for US sanctions removal #OOTT
  • Indices Update: As of 10:00, these are your best and worst performers based on the London trading schedule: Germany 30: 0.65% Wall Street: 0.56% FTSE 100: 0.46% US 500: 0.45% France 40: 0.44% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/rOaykvimoe
  • China asks banks and alipay not to involve in Crypto operations
USD Index Finds Bids as Stocks Post 3 Day Losing Streak

USD Index Finds Bids as Stocks Post 3 Day Losing Streak

Michael Boutros, Strategist
USD_Index_Finds_Bids_as_Stocks_Post_3_Day_Losing_Streak_body_Picture_4.png, USD Index Finds Bids as Stocks Post 3 Day Losing StreakUSD_Index_Finds_Bids_as_Stocks_Post_3_Day_Losing_Streak_body_Picture_3.png, USD Index Finds Bids as Stocks Post 3 Day Losing Streak

The greenback is fractionally higher at the close of North American trade with the Dow Jones FXCM Dollar Index (Ticker: USDOLLAR) advancing just 0.02% on the session. The day was marked by broad-based losses in equities after weaker than expected Chinese manufacturing data showed contraction in the sector, fueling ongoing concerns about a slower growth in the world’s second largest economy. Eurozone PMI data followed with the composite, services, and manufacturing components all missing estimates, posting deeper contractions than expected. US Stocks closed weaker across the board for a third consecutive session with the Dow, the S&P, and NASDAQ off by 0.60%, 0.72%, and .39% respectively. While the dollar was relatively unchanged on the session,

The dollar held a rather tight range throughout the session after failing a second attempt at a breach above trendline resistance dating back to the October 4th highs. The move suggests that the greenback may look to pull back to the convergence of channel support and he 61.8% Fibonacci extension taken from the August 1st and October 27th troughs at 9945. This level remains paramount with only a break below negating our bullish bias. Note that the daily relative strength index seems to be flattening out, offering little in the way of conviction for our directional bias.

USD_Index_Finds_Bids_as_Stocks_Post_3_Day_Losing_Streak_body_Picture_2.png, USD Index Finds Bids as Stocks Post 3 Day Losing Streak

An hourly chart shows the index continuing to trade within the confines of a newly formed ascending channel formation with the dollar closing just above the psychological 10,000 mark. A break below this formation eyes subsequent support targets at 9975, the 61.8% extension at 9945 and 9900. Topside resistance stands at 10,030 backed by 10055, and the 78.6% extension tested last week at 10,080. Look for the index to remain in consolidation heading into Asia Pacific trade with a breach above channel resistance offering further conviction for dollar advances.

USD_Index_Finds_Bids_as_Stocks_Post_3_Day_Losing_Streak_body_Picture_1.png, USD Index Finds Bids as Stocks Post 3 Day Losing Streak

The greenback advanced against three of the four component currencies highlighted by a 0.71% advance against the aussie. The high yielder has come under substantial pressure as fears of a slowdown in Australia’s largest trading partner, China continue to weigh on demand for the aussie. For complete analysis on the AUDUSD and detailed scalp targets refer to this week’s Scalp Report. The Japanese yen is the top performer against the dollar today with an advance of 1.08% on the session after moving a full 140% of its daily average true range. Classic haven flows have continued to back both the dollar and the yen as traders jettison risk assets in favor of lower yielding “haven” assets. Although our medium-term bias on the USDJPY remains weighted to the topside, the recent pullback may still have yet to go with move likely to offer favorable long entries. For complete scalp targets on the USDJPY refer to today’s Winners/Losers report.

Tomorrow’s economic docket is rather light with only the February new home sales on tap. Consensus estimates call for the pace of sales to increase by 1.3% m/m, up from a previous drawdown of 0.9% m/m. Investors will be closely eyeing the data after existing home sales saw a decline of -0.9% m/m yesterday, missing calls for a positive read of 0.9% m/m. With the housing sector still under pressure, the Fed will remain reluctant to normalize policy and the dollar may come under pressure should the print miss expectations.

Upcoming Events

Date

GMT

Importance

Release

Expected

Prior

3/23

14:00

MEDIUM

New Home Sales

325K

321K

3/23

14:00

MEDIUM

New Home Sales (MoM)

1.3%

-0.9%

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

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.

DISCLOSURES