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.

Free Trading Guides
EUR/USD
Bearish
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
Mixed
Gold
Mixed
Oil - US Crude
Mixed
Bitcoin
Mixed
More View more
Notice

DailyFX PLUS Content Now Available Freely to all DailyFX Users

Real Time News
  • The US Dollar remains in consolidation mode against the Philippine Peso and Indian Rupee. Will the Singapore Dollar weaken as $USDSGD rising support holds ahead? Find out from @ddubrovskyFX here: https://t.co/HZ8Loqj3Ey https://t.co/6PCFkdj3ka
  • Follow @DailyFXedu for your regular #webinar updates with @DailyFX analysts and catch up on the webinars you missed. https://t.co/Da10QUg9r1
  • Greed has proven to be a hindrance more than assistance for traders. How does greed lead to #FOMOintrading? Find out from @RichardSnowFX here: https://t.co/aT8TZjlFqP https://t.co/Le8Qx6OOwV
  • $GBPUSD at the moment break-even straddles = 152pips meaning that for option traders to realize gains, the spot price must see a move greater than 152pips. Get your market update from @JMcQueenFX here: https://t.co/odj2lLRrGf https://t.co/RXCBwHGluG
  • $EURGBP has fallen over 6% since August and is now rapidly approaching a critical support level not reached since May. Will a break below accelerate the aggressive selloff? Find out from @ZabelinDimitri here: https://t.co/CBM8Fg7vM0 https://t.co/0yDnEpzQqR
  • The #Euro is struggling for direction against the US Dollar but the near-term downtrend guiding it lower since late June remains firmly intact. Where is $EURUSD heading? Get your technical analysis from @IlyaSpivak here: https://t.co/us6AINmuoe https://t.co/J4hQtyprYf
  • $DXY & $SPX500 hold steady after #FED rate cut. Get your update from @JohnKicklighter here: https://t.co/vqXlKCMDYA
  • Dow Jones & Dax 30 levels to watch ahead of the fed from @PeterHanksFX here: https://t.co/iUIrsygKz2
  • The politics of the US and UK may be starkly divided but their grip on the vast, $6.6 trillion global foreign exchange trade seems as tight as ever. Get your market update from @DavidCottleFX here:https://t.co/xTKHOvrIqg https://t.co/vtHhdnF82Q
  • How can confidence in trading help with avoiding #FOMOintrading? Find out from @WVenketas here: https://t.co/MY7j9ISn4S https://t.co/n7XwfiDZz2
Opening Comment

Opening Comment

2009-10-21 04:39:00
Joel Kruger, Technical Strategist
Share:

OPENING COMMENT

The buck is going to need more than just one day of strength to convince the markets that it is legitimately attempting to form a bottom.  At this point however, the strong currency buying has once again emerged and the greenback is lower heading into Europe. The fact the Euro was unable to clear 1.5000 barriers on Tuesday, still leaves an excuse for the market to race higher, to officially clear this level. For now, key support in Eur/Usd comes in by 1.4830, with a break below required to ultimately shift the short-term structure. Until then, the bulls remain firmly in control. On Tuesday, we saw a barrage of USD supportive comments from officials across the globe, but as to be expected, the market was not influenced significantly by the talk.

However, there have been some interesting developments that could be more than just talk. Brazil has come out imposing capital flow controls to stem the appreciation of the Real, while the Bank of Canada has come out, following yesterday’s unched decision, expressing its concerns over the appreciation in the Loonie, while also conceding that they are open to intervention. Meanwhile, North and South Eastern Asian countries, along with Russia, have been seen actively buying USDs to slow the appreciation in their currencies. Additionally, the UK and Sweden have also opted for “stealth devaluations.” Even in the Eurozone, we have been starting to hear some expressed concern, with France saying that the USD weakness can no longer be tolerated.

Overnight, global equities have managed to rebound a bit on the back of the solid US earnings after the bell on Tuesday. In New Zealand, RBNZ Bollard has helped to rally Kiwi after saying that a high NZD is not necessarily an obstacle to raising the cash rate. In Australia, some stronger second tier data has helped to bolster the very well bid Aussie. White House Romer has been on the wires supporting the current stimulus while also saying that the economy is still under severe stress. Elsewhere, Fed Plosser was out with some hawkish comments, but failed to have any noticeable influence on price action. Sterling has been an outperformer on the session, with BoE King comments helping. The central banker has sad that he is not sure how long low rates will continue, and that rates would return to normal levels in some time. Looking ahead, the European calendar is unusually light, with the only key release coming from the BoE Minutes due at 8:30GMT. 

 

Written by Joel Kruger, Technical Currency Strategist for DailyFX.com
If you wish to receive Joel's reports in a more timely fashion, e-mail
instructor@dailyfx.com and you will be added to the "distribution" list.

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

DISCLOSURES

News & Analysis at your fingertips.