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
EUR/USD
Bearish
Oil - US Crude
Mixed
Wall Street
Mixed
Gold
Bearish
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
GBP/USD
Bearish
USD/JPY
Bullish
More View more
Real Time News
  • Traders tend to overcomplicate things when they’re starting out in the forex market. This fact is unfortunate but undeniably true.Simplify your trading strategy with these four indicators here:https://t.co/A4dqGMPylo https://t.co/yZzArpGs2h
  • GBP turbulence persists as investors eye the next round of EU-UK Brexit negotiations. Cautious optimism signals a deal is near. Get your #currencies update from @JMcQueenFX here: https://t.co/WjU4oYpmf7 https://t.co/VcNnCjm0B2
  • An economic calendar is a resource that allows traders to learn about important economic information scheduled to be released. Stay up to date on the most important global economic data here: https://t.co/JdvW6HNuqV https://t.co/AiLoS7DrEQ
  • Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Learn about FX leverage here: https://t.co/3Wked6GBOp https://t.co/HicBmGrokK
  • There is a great debate about which type of analysis is better for a trader. Is it better to be a fundamental trader or a technical trader? Find out here:https://t.co/7kPzAoNoLG https://t.co/5lbyBJeeA7
  • Entry orders are a valuable tool in forex trading. Traders can strategize to come up with a great trading plan, but if they can’t execute that plan effectively, all their hard work might as well be thrown out. Learn how to place entry orders here: https://t.co/lAFyv1gM0P https://t.co/ubLimoYAcr
  • What is the outlook for financial markets ahead of the first presidential debate and how are Democratic nominee Joe Biden and President Donald Trump doing in the polls? Find out from @ZabelinDimitri here:https://t.co/QQwAZTxZFg https://t.co/4cRhRCiv3C
  • The US Dollar could gain as it forms bullish technical formations against the Singapore Dollar and Malaysian Ringgit. USD/PHP may have bottomed, will USD/IDR rise next? Find out from @ddubrovskyFX here:https://t.co/3UIKmbLIvD https://t.co/PY2YyH4vkQ
  • The Indian Rupee may be at risk to the US Dollar as USD/INR attempts to refocus to the upside. This is as the Nifty 50, India’s benchmark stock index, could fall further. Get your $USDINR market update from @ddubrovskyFX here:https://t.co/3wsYlSxd26 https://t.co/z2qB9p8IgX
  • A proxy of #EmergingMarket capital flows hit its lowest since July, falling with the #SP500 after some divergence This is as #USD gained against its developing FX counterparts, highlighting potential risk of a spillover outwards Stay tuned for next week's #ASEAN fundy outlook! https://t.co/kAvpnb0EXO
USD Index Presses Daily Resistance on Improving US Data- 10,040 Key

USD Index Presses Daily Resistance on Improving US Data- 10,040 Key

2012-08-14 22:13:00
Michael Boutros, Strategist
Share:
USD_Index_Presses_Daily_Resistance_on_Improving_US_Data-_10040_Key_body_Picture_4.png, USD Index Presses Daily Resistance on Improving US Data- 10,040 KeyUSD_Index_Presses_Daily_Resistance_on_Improving_US_Data-_10040_Key_body_Picture_3.png, USD Index Presses Daily Resistance on Improving US Data- 10,040 Key

The greenback continued its advance today with the Dow Jones FXCM Dollar Index (Ticker: USDOLLAR) advancing 0.22% on the session after moving 76% of its daily average true range. The gains come on the back of yet another lackluster performance in broader risk assets with US stocks closing virtually flat on the session despite strength in European equities and stronger-than-expected retail sales data. The data saw hopes of additional Fed easing diminish further with the dollar advancing against all its major counter-parts save the loonie. Investors remain on edge however, despite improving economic data with stocks erasing nearly all their gains in the final hour of trade. By the closing bell in New York the S&P and NASDAQ were off by 0.01% and 0.18% respectively while the Dow eked out a fractional advance of 0.02% on the session.

The dollar closed just below key resistance noted in yesterday’s report at the 61.8% Fibonacci extension taken from the June and July highs at 10,040. A breach above this mark eyes topside targets at 100-day moving average at 10,061and the monthly high just shy of 10,100 (confluence with the March high).We maintain our bullish bias so long as the index holds above key daily support at the 78.6% Fibonacci at 9990 with a break below this level invalidating our near-term outlook. A break below the 200-day moving average at 9980 sets a bearish tone with such a scenario eyeing subsequent support targets at the 100% extension at 9925. Note that daily RSI has continued to push off the 40-mark suggesting that the decline off the July highs remains but a correction in a larger encompassing bull market. Look for a topside breach above RSI trendline resistance to signal the end of the correction with such a scenario offering further conviction on our directional bias.

USD_Index_Presses_Daily_Resistance_on_Improving_US_Data-_10040_Key_body_Picture_2.png, USD Index Presses Daily Resistance on Improving US Data- 10,040 Key

An hourly scalp chart shows the index closing just below interim resistance at the 23.6% Fibonacci retracement taken from the July 24th decline at 10,037. A breach above this mark eyes intra-day resistance targets at 10,058, the 38.2% retracement at 10,073 and the monthly high at 10,096. Interim support rests at 10,025 backed by 10,010 and the aforementioned critical support at 9,990.

USD_Index_Presses_Daily_Resistance_on_Improving_US_Data-_10040_Key_body_Picture_1.png, USD Index Presses Daily Resistance on Improving US Data- 10,040 Key

The greenback advanced against all four component currencies highlighted by a 0.55% advance against the Japanese yen. Although today’s advance did pierce long standing trendline resistance dating back to the March highs, the move lacked conviction and is insufficient for us to call this a break. Our broader view on the USDJPY remains constructive but with the price action seen since late July, we will remain prudent and await proper confirmation to initiate our long position. For a complete technical outlook on the USDJPY refer to today’s Winners/Losers report.

The British pound is the strongest performer of the lot with fractional decline of just 0.01% on the session. Inflation data out of the UK unexpectedly ticked higher in July, offering some support for the sterling as stickiness in core prices dampens the scope for additional monetary easing from the Bank of England. The GBPUSD failed to breach above the 200-day moving average for the sixth time since mid-June with the rejection suggesting that topside advances in the pound are likely to remain capped in the near-term. Looking ahead, traders will be closely eyeing minutes from the latest Monetary Policy Committee meeting after Governor Mervyn King talked down speculation of additional rate cuts from the central bank, with the pound likely to continue to consolidate into the apex of a broad 2 ½ month long triangle formation.

---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 Wednesday 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

Beginner Fibonacci Expo Presentation

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

DISCLOSURES