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.

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
Bullish
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
Wall Street
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
Gold
Mixed
GBP/USD
Bullish
USD/JPY
Mixed
More View more
Real Time News
  • Long $USDCNH was one of my favorite setups for the 2nd quarter btw. I maintain, I like the fundamentals; but the greenback's recent battering needs to relent before this can perform
  • The Dollar's tumble this past week was an abrupt one. We'll see if inflation pressures trigger a shift in risk and rate expectations in the US which could turn the USD's bearings. Meanwhile, a pair I haven't highlighted ... https://t.co/yXl1aoOlIy https://t.co/TWV7tqv2y8
  • $DOGEUSD's daily range post Elon SNL spot is 0.2900. That may not sound like a lot but the current spot rate is ~ 0.5600. The lower wick (reversal from Sunday's low) is a 35% recovery from the low. A speculator's market, not an investor's. https://t.co/hAjg8YO7xA
  • What are some factors driving AUD? Get your free forecast for this quarter here:https://t.co/z85CIVYiuK #DailyFXGuides https://t.co/ZhVyZvw5Ii
  • Last week ended well for $EURUSD, with Friday’s shockingly poor US jobs data giving it a lift, and this week could well see its advance extend if it can break conclusively above resistance at 1.2150. Get your market update from @MartinSEssex here: https://t.co/EFPGUI8Uxc https://t.co/LZA6oXsmJO
  • $GBPUSD broke higher from a Symmetrical Triangle pattern late last week. Meanwhile, $EURGBP remains largely rangebound. Get your market update from @FxWestwater here: https://t.co/hnjGCww0ET https://t.co/0LcIv5Yudg
  • The continuity seen across these volatility cycles is a good thing. Historical precedence offer a blueprint for identifying conditions supportive for a vol-event to occur, and how they may unfold. Deepen your knowledge of historical volatility here: https://t.co/vg7w10la3j https://t.co/0gwSneZjOL
  • Another week of record breaking gains in the alt-coin space, while Ethereum (ETH) continues to print fresh highs and eats into Bitcoin’s (BTC) market dominance. Get your market update from @nickcawley1 here: https://t.co/robpKfDf8U https://t.co/3sOzL01rcI
  • The non-farm payroll (NFP) figure is a key economic indicator for the United States economy. It is also referred to as the monthly market mover. Find out why it has been given this nickname here: https://t.co/yOUVEEqhc5 https://t.co/K1F3QlB8ik
  • Knowing how to accurately value a stock enables traders to identify and take advantage of opportunities in the stock market. Find out the difference between a stock's market and intrinsic value, and the importance of the two here: https://t.co/QszmdZFxlk https://t.co/cXImPrjl8x
USD Advance Curbed by Persistent JPY Strength- Consolidation Ahead

USD Advance Curbed by Persistent JPY Strength- Consolidation Ahead

Michael Boutros, Strategist
USD_Advance_Curbed_by_Persistent_JPY_Strength-_Consolidation_Ahead_body_Picture_4.png, USD Advance Curbed by Persistent JPY Strength- Consolidation AheadUSD_Advance_Curbed_by_Persistent_JPY_Strength-_Consolidation_Ahead_body_Picture_3.png, USD Advance Curbed by Persistent JPY Strength- Consolidation Ahead

The greenback is fractionally higher at the close of North American trade with the Dow Jones FXCM Dollar Index (Ticker: USDOLLAR) advancing 0.04% on the session after moving nearly 77% of its daily average true range. Equity markets were sharply off sharply on weaker-than-expected data out of Europe and as yields on Spain’s 10-year note topped euro-record highs at 7.5%. Dismal manufacturing data out of Germany and France showed the sectors contracting at their fastest pace since June and May of 2009 respectively, with the Eurozone composite PMI holding at 46.4 for the second consecutive month (below 50 means contraction). It seems as though region will indeed face a prolonged recession as Europe’s powerhouse nations continue to show signs of slowing with the single currency hitting fresh 2-year lows today at 1.2041. The sell-off was further exacerbated by the Richmond Fed Manufacturing Index which grossly missed consensus estimates with a read of -17. By the close of trade in New York all three major indices were in the red, albeit off session lows, with the Dow, the S&P and NASDAQ off by 0.82%, 0.90% and 0.94% respectively. US Treasury yields saw pressure on the long end of the curve with the 10year now down to record lows at 1.40%.

The dollar continued to hold above the October high at 10,134 which has served as a clear pivot over the past three months. The index now eyes trendline resistance dating back to the June 1st high, currently around 10,190, with a breach above this level eying subsequent daily targets at the July high at 10,223 and the 50% Fibonacci extension taken form the April and June lows at 10,280. A break back below 10,134 risks a correction down to soft daily support at 10,075 backed by the 61.8% Fibonacci extension taken from the June and July crests at 10,040. Only a break below July low at 10,036 would invalidate our medium-term bullish bias.

USD_Advance_Curbed_by_Persistent_JPY_Strength-_Consolidation_Ahead_body_Picture_2.png, USD Advance Curbed by Persistent JPY Strength- Consolidation Ahead

An hourly scalp charts shows the index trading within the confines of a newly formed ascending channel formation dating back to the July 19th low with the dollar rebounding off soft resistance at 10,165 before closing at the 61.8% retracement taken form the July 12th decline at 10,152. Note that RSI has continued to consolidate into the apex of a wedge formation with a topside breach offering further conviction on our directional bias. A breach above interim resistance eyes subsequent topside targets at the 78.6% retracement at 10,183, 10,200, and the July 12th high at 10,223. A move below immediate support risks losses to the 50% retracement at 10,130 (October high pivot at 10,134) with a break below this mark eyeing floors at the 38.2% retracement at 10,107 and 10,080.

USD_Advance_Curbed_by_Persistent_JPY_Strength-_Consolidation_Ahead_body_Picture_1.png, USD Advance Curbed by Persistent JPY Strength- Consolidation Ahead

The greenback advanced against two of the four component currencies highlighted by a 0.40% advance against the euro. The single currency remains at risk with our medium-term objective held at the 1.20-handle. The yen was the top performer of the lot with an advance of 0.29% on the session as positive real interest rates in Japan continue to increase the appeal of the low yielder amid the ongoing risk-off environment. For a complete technical outlook on the EURUSD and the USDJPY refer to today’s Winners/Losers report.

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

Review today’s Scalp Webinar for further insight on the USDOLLAR and other current setups

Join Michael on Tuesday morning for a Live Scalping Webinar on DailyFX Plus (Exclusive for Live Clients) at 1400GMT (10ET)

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”

Introduction to Scalping for Beginners Webinar

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

DISCLOSURES