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
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
Oil - US Crude
Bullish
Wall Street
Bearish
Gold
Bearish
GBP/USD
Bearish
USD/JPY
Bullish
More View more
Real Time News
  • Dealing with the fear of missing out – or FOMO – is a highly valuable skill for traders. Not only can FOMO have a negative emotional impact, it can cloud judgment and overshadow logic. Learn how you can control FOMO in your trading here: https://t.co/lgDf5cVYOn https://t.co/RJLpBgS43V
  • Currency exchange rates are impacted by several factors. Are different world leaders a contributing factor? Find out here: https://t.co/4jsORznRTE https://t.co/6GrWzkOouM
  • Risk management is one of the most important aspects of successful trading, but is often overlooked. What are some basic principles or risk management? Find out from @PaulRobinsonFX here: https://t.co/IsnpfJhp91 https://t.co/lIUxpfSem3
  • Looking for a new way to trade reversals? One of the most used reversal candle patterns is known as the Harami. Like most candlestick formation patterns, the Harami tells a story about sentiment in the market. Get better with trading reversals here: https://t.co/rfwUWJfbz9 https://t.co/8kBulRFd6l
  • MACD who? The Moving Average Convergence Divergence (MACD) is a technical indicator which simply measures the relationship of exponential moving averages (EMA). Find out how you can incorporate MACD into your trading strategy here: https://t.co/ZNs4Qi8ieG https://t.co/6u52PuzIaY
  • Forex quotes reflect the price of different currencies at any point in time. Since a trader’s profit or loss is determined by movements in price, it is essential to develop a sound understanding of how to read currency pairs. Learn how to read quotes here: https://t.co/CNtqrKWDBY https://t.co/rHDy0XNZjQ
  • (Weekly Outlook) Australian Dollar Outlook: AUD/USD Divergence With Wall Street Risks Continuing #AUD $AUDUSD #Fed #Stocks https://www.dailyfx.com/forex/fundamental/forecast/weekly/aud/2021/06/12/Australian-Dollar-Outlook-AUDUSD-Divergence-With-Wall-Street-Risks-Continuing.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/ryxG0fHmzd
  • The US Dollar steadied against most ASEAN currencies this past week. Key support levels remain in play looking at USD/SGD, USD/THB and USD/PHP. USD/IDR may rise with a new trendline. Get your market update from @ddubrovskyFX here:https://t.co/bpr5ZlKIcE https://t.co/0pskmzXZHi
  • EUR/USD has been looking toppy since late May as bearish technical signals played out. But, rising Euro short bets from retail traders hint that the currency may hold its footing. Get your market update from @ddubrovskyFX here:https://t.co/fAZijmQVqh https://t.co/pXICvFE007
  • The Japanese Yen may rise as retail investors increase their long exposure in pairs like USD/JPY and EUR/JPY. Will these pairs turn lower? What are key levels to watch for? Find out from @ddubrovskyFX here:https://t.co/PqNahX71oF https://t.co/xZzmwrVQcr
US Dollar Outlook: DXY Index Hammered as Treasury Yields Ebb

US Dollar Outlook: DXY Index Hammered as Treasury Yields Ebb

Rich Dvorak, Analyst

US DOLLAR PRICE OUTLOOK: DXY INDEX HITS 12-WEEK LOW AS INFLATION FEARS WANE

  • US Dollar bears drive the Greenback down to its weakest level since late February
  • DXY Index now trades in the red year-to-date after falling -4% from its March peak
  • Softer Treasury yields due to less fear of Fed tapering likely fueling USD weakness
  • Visit the DailyFX Education Center or check out these US Dollar trading strategies

The US Dollar is continuing its slide on Tuesday as bears steer the broader DXY Index to fresh 12-week lows. US Dollar selling pressure has been felt across the board of major currency pairs on the session, though the Greenback has weakened particularly against the Euro with EUR/USD up about 60-pips intraday. Seeing that EUR/USD price action is the largest component of the DXY Index, this has largely helped strongarm the broader US Dollar lower.

The latest extension of US Dollar weakness leaves the DXY Index on pace for its fourth-consecutive decline and trading in negative territory year-to-date. This could follow Treasury yields pulling back slightly with the ten-year shedding about 6-basis points after failing to eclipse 1.7%. Perhaps waning fears of inflation and Fed taper risk explain these moves as I previously noted how US Dollar outlook hinges on Treasury yield volatility (and lack thereof).

DXY – US DOLLAR INDEX PRICE CHART: DAILY TIME FRAME (24 DEC 2020 TO 18 MAY 2021)

DXY Index Price Chart US Dollar Forecast

Chart by @RichDvorakFX created using TradingView

That said, the broader US Dollar is looking a bit extended here as the relative strength index flirts with ‘oversold’ territory. Also, there appears to be two glaring technical support levels that US Dollar bulls might look to defend. First and foremost is the 89.70-price level on the DXY Index, which is underpinned by the 25 February swing low. The bottom Bollinger Band might help stem US Dollar selling pressure as well. Invalidating technical support provided by the 89.70-price level, however, would likely open the door for US Dollar bears to target the 06 January swing low.

Learn More – Improve your Technical Analysis with DailyFX Education

On the other hand, DXY Index rebound efforts could bring a test of the negatively-sloped 20-day simple moving average into focus. Surmounting bearish trendline resistance might coincide with follow-through higher toward the 50-day moving average. Nevertheless, in order to help gauge where the DXY Index heads next, I would continue to keep close tabs on Treasury yields and their generally strong direct relationship with the broader US Dollar.

-- 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