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
Mixed
Oil - US Crude
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
Wall Street
Bearish
Gold
Mixed
GBP/USD
Mixed
USD/JPY
Mixed
More View more
Real Time News
  • The US Dollar may seesaw as investors navigate what could be a volatile week packed with US GDP data, rising Covid-19 cases, Q3 corporate earnings and more. Get your #currencies update from @ZabelinDimitri here: https://t.co/UNRcd3c9uA https://t.co/BiUiOV4cXC
  • USD/MXN pushes lower towards a critical support level in the midst of continued political uncertainty. Get your #currencies update from @HathornSabin here: https://t.co/HEAzgJJJjg https://t.co/NU9wYbIuni
  • Gold Forecast - via @DailyFX “Gold price outlook still hinges on stimulus deal expectations and corresponding swings in real yields.” What will I have my eyes on in the week ahead? Link to Analysis: https://www.dailyfx.com/forex/fundamental/forecast/weekly/title/2020/10/23/gold-forecast-xau-usd-at-the-mercy-of-a-fiscal-stimulus-deal.html $GC_F $XAUUSD $GLD https://t.co/GWEI4d4mMu
  • Forex liquidity makes it easy for traders to sell and buy currencies without delay, and also creates tight spreads for favorable quotes. Low costs and large scope to various markets make it the most frequently traded market in the world. Learn more here: https://t.co/5uSWKoLkd6 https://t.co/rxswe1gVL0
  • Talks between the EU and UK restarted today and will continue over the weekend as negotiators from both sides battle against the clock. Get your #currencies update from @nickcawley1 here: https://t.co/ER8IT1yxYO https://t.co/Jeeu2P9mwB
  • The London trading session accounts for around 35% of total average forex turnover*, the largest amount relative to its peers. The London forex session overlaps with the New York session. Learn about trading the London forex session here: https://t.co/UTWxbnNz7M https://t.co/W9awqb818J
  • 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/aVAzFypAg1 https://t.co/lucvsACxu5
  • There are three major forex trading sessions which comprise the 24-hour market: the London session, the US session and the Asian session. Learn about the characteristics of each session here: https://t.co/UVvf51HiVP https://t.co/yywnE39MLU
  • The US Dollar is losing ground against ASEAN FX, with USD/SGD and USD/IDR possibly readying to extend declines. Will USD/PHP and USD/MYR follow? Find out from @ddubrovskyFX here: https://t.co/l705RWumj5 https://t.co/jBbMKYp0F5
  • There are many different types of forex orders, which traders use to manage their trades. While these may vary between different brokers, there tends to be several basic FX order types all brokers accept. Learn about different FX order types here: https://t.co/lIJdiz4xSz https://t.co/YUhC9cCDpy
US Dollar Price Volatility Report: EUR/USD, AUD/USD & USD/MXN

US Dollar Price Volatility Report: EUR/USD, AUD/USD & USD/MXN

2019-09-25 21:30:00
Rich Dvorak, Analyst
Share:

US DOLLAR CURRENCY VOLATILITY: EURUSD, AUDUSD & USDMXN IN FOCUS

  • USD price action ripped higher toward fresh year-to-date highs on Wednesday
  • The US Dollar could get a jolt in response to Advance Goods Trade Balance data if a bulging deficit instigates President Trump to reaccelerate the US-China Trade War
  • Take a look at How to Trade the Most Volatile Currency Pairs

The US Dollar flexed its muscles once again as the greenback gained 0.71% on balance measured via the DXY Index. USD strength was felt across the board throughout Wednesday’s trading session despite little evidence of a single catalyst sparking the move. One possible explanation, however, which I pointed to in yesterday’s US Dollar price volatility report, could be the healthy rise in the 2s10s Treasury yield curve spread that materialized.

DXY INDEX – US DOLLAR PRICE CHART: DAILY TIME FRAME (MARCH 27, 2019 TO SEPTEMBER 25, 2019)

DXY US Dollar Index Price Chart Technical Analysis

Chart created by @RichDvorakFX with TradingView

Once more the DXY Index’s 20-day simple moving average average provided technical support for the US Dollar and helped springboard the world reserve currency back toward year-to-date highs around the 99.00 handle. Today’s impressive surge in the US Dollar sent the DXY Index toward the upper bound of its 20-day 2-standard deviation Bollinger Band, but the greenback still trades comfortably within its rising wedge pattern that appears to have formed since late April.

The US Dollar’s impressive rally enabled the currency to eclipse confluent resistance posed by the 23.6% Fibonacci retracement level noted on the chart above, which could serve as an area of technical support going forward. Though, the RSI perking up above 50 and MACD turning positive both suggest potential for US Dollar upward momentum to continue.

US DOLLAR IMPLIED VOLATILITY & TRADING RANGES (OVERNIGHT)

US Dollar Price Implied Volatility Table

Generally speaking, US Dollar implied volatility measures ticked higher following today’s sharp move by the greenback but remain roughly in line with recent readings. As has been the case recently, GBPUSD is anticipated to be the most active major currency pair during Thursday’s trading session, though volatility experienced by the cable has been driven less so by USD price action and more so by ongoing Brexit drama.

The DailyFX Economic Calendar can be used to identify high-impact event risk on deck with potential to serve as a source of volatility for the US Dollar and other major markets. That said, the release of August US Advanced Goods Trade Balance data could draw the attention of traders – particularly if it compels President Trump to escalate the US-China trade war or threaten the Fed. In turn, AUDUSD and USDCNH should be on the radar considering the Aussie and Chinese Yuan can serve as trade war gauges. Moreover, ECB President Mario Draghi will be giving a speech in Frankfurt, which could send EURUSD oscillating, while USDMXN is also in focus with the Mexican Peso primed for another Banxico rate cut.

-- Written by Rich Dvorak, Junior Analyst for DailyFX.com

Connect with @RichDvorakFX on Twitter for real-time market insight

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

DISCLOSURES