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
Bearish
Oil - US Crude
Mixed
Wall Street
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
Gold
Mixed
GBP/USD
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
USD/JPY
Bullish
More View more
Real Time News
  • Although the longer-term technical outlook for AUD remains skewed to the topside, recent developments suggest the commodity-sensitive currency could lose ground against USD and JPY. Get your market update from @DanielGMoss here: https://t.co/Rl1h8WdXwp https://t.co/49RKx86FzG
  • ECB policymakers were out in force last week, saying they were watching Eurozone government bond yields, but yields rose anyway, and that’s positive for $EURUSD and the Euro crosses. Get your market update from @MartinSEssex here: https://t.co/nJdh9dA1HM https://t.co/peLh7zTTiz
  • The Federal Reserve System (the Fed) was founded in 1913 by the United States Congress. The Fed’s actions and policies have a major impact on currency value, affecting many trades involving the US Dollar. Learn more about the Fed here: https://t.co/ADSC4sIHrP https://t.co/vs7ypHHwya
  • The GBP rally vs USD came to an abrupt end and reversal; this sets cable up for more selling in the week ahead. Get your market update from @PaulRobinsonFX here: https://t.co/Ee9PSppnd2 https://t.co/uaiCiEHBMs
  • What are some trading takeaways from 2020, as we jump into the new year? Find out with your free guide here: https://t.co/e7udCTJlmf #DailyfxGuides https://t.co/OXUgYIl2ru
  • Key levels in forex tend to draw attention to traders in the market. These are psychological prices which tie into the human psyche and way of thinking. Learn about psychological levels here: https://t.co/8A1QhwMVKo https://t.co/xncree8XaW
  • Becoming a forex trader means living and breathing the excitement, risk and reward of trading in the biggest and most liquid market in the world. Do you have what it takes? Read here to discover the qualities and processes it takes to build consistency: https://t.co/EfWEACQ6Cz https://t.co/gGOU1RVQzq
  • Becoming a forex trader means living and breathing the excitement, risk and reward of trading in the biggest and most liquid market in the world. Do you have what it takes? Read here to discover the qualities and processes it takes to build consistency: https://t.co/EfWEACQ6Cz https://t.co/wrI29FTN41
  • Do you know how to properly Identify a double top formation? Double tops can enhance technical analysis when trading both forex or stocks, making the pattern highly versatile in nature. Learn more about the double top formation here: https://t.co/t9Flsqcxo9 https://t.co/UzzC1bGzRJ
  • It’s important for traders to be familiar with FX spreads as they are the primary cost of trading currencies. Understand a pair's spread here: https://t.co/zEEUHZBx7g https://t.co/46bdHdOmOV
USD Price Outlook: US Dollar Bears Attempt Another Push

USD Price Outlook: US Dollar Bears Attempt Another Push

Rich Dvorak, Analyst

US DOLLAR OUTLOOK: USD PRICE ACTION SNAPS LOWER AGAINST MOST FX PEERS AS WEAKNESS RESUMES

  • US Dollar bears look to be back in the drivers seat as Greenback weakness resumes
  • USD price action turned sharply lower against EUR, CAD and AUD, but gained vs GBP
  • The DXY Index appears to have rejected its downward sloping 8-day moving average
Advertisement

The US Dollar traded on its back foot during Thursday’s trading session. USD price action edged 0.34% lower on balance as measured by the US Dollar Index, which marks the first down day this week. US Dollar weakness was notable across most major currency pairs, but the slide by GBP/USD helped offset the Greenback’s decline thanks to no deal Brexit risk weighing negatively on the Pound Sterling.

That said, a large driver of US Dollar downside today was likely fueled by the 0.5% pop by EUR/USD price action in the wake of this morning’s ECB rate decision. Movement toward reaching a fiscal stimulus deal hinted at by US politicians, who have reportedly reached an agreement on state and local aid, could have contributed to the resumption of US Dollar selling pressure as well.

Introduction to Forex News Trading
Introduction to Forex News Trading
Recommended by Rich Dvorak
Introduction to Forex News Trading
Get My Guide

DXY - US DOLLAR INDEX PRICE CHART: DAILY TIME FRAME (24 AUG TO 10 DEC 2020)

DXY Index Price Chart US Dollar Technical Forecast

Chart by @RichDvorakFX created using TradingView

From a technical perspective, the pivot lower by USD price action coincided with the US Dollar Index rejecting its downward-sloping 8-day simple moving average. This could suggest US Dollar bears still remain broadly in control. Nevertheless, recent consolidation on the DXY Index looks to have formed an intermittent range between the 90.500-91.235 levels. Breaching this bottom barrier could motivate a push below the 90.00-handle whereas eclipsing the potential technical resistance zone highlighted might open up the door for a relief bounce toward the 92.00-price mark.

Forex for Beginners
Forex for Beginners
Recommended by Rich Dvorak
Forex for Beginners
Get My Guide

USD PRICE OUTLOOK: US DOLLAR IMPLIED VOLATILITY TRADING RANGES (OVERNIGHT)

USD Price Chart Outlook US Dollar Implied Volatility Trading Ranges EURUSD GBPUSD

Learn More - What is Implied Volatility & Why Should Traders Care?

GBP/USD price action is still expected to be the most active major FX pair according to its overnight implied volatility reading of 15.0%, which is above its 20-day average reading of 11.9%, and ranks in the top 90th percentile of measurements taken over the last 12-months. The Pound-Dollar remains mostly exposed to Brexit headlines. Most recently, UK Prime Minister Boris Johnson echoed the need to prepare for a no trade deal scenario. Talks between he UK and EU are expected to continue through Sunday, which could leave GBP/USD price action vulnerable to sharp swings until clarity on Brexit is provided.

GBP/USD BEARISH
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily 13% -25% -11%
Weekly 28% -40% -19%
What does it mean for price action?
Get My Guide

-- Written by Rich Dvorak, 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