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
Bullish
GBP/USD
Bullish
USD/JPY
Bullish
Gold
Mixed
Oil - US Crude
Mixed
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
Bitcoin
Bullish
More View more
Real Time News
  • Central bank independence has several advantages and disadvantages. Find out what they are in-depth with @MartinSEssex here: https://t.co/wVFXbbTxf1 https://t.co/WkwZK6wtzy
  • The $GBPUSD may be carving out a 4-year bearish candlestick pattern as the $EURGBP downtrend prolongs. GBP/JPY may rise but be wary of #Brexit risks clouding technical analysis. Get your GBP market update from @ddubrovskyFX here: https://t.co/wzV4fygKWe https://t.co/hpDmrh0LLo
  • Get your technical setups for the British Pound ahead of the key #Brexit vote in Parliament this weekend here $GBPUSD $EURGBP $GBPJPY - https://www.dailyfx.com/forex/technical/article/fx_technical_weekly/2019/10/19/GBPUSD-EURGBP-GBPJPY-Technical-Analysis-Amid-Brexit-Deal-Vote.html?CHID=9&QPID=917702 https://t.co/TBdvAY6GN2
  • The Australian Dollar could reverse gains if #Brexit is forced to be delayed. Global growth slowdown woes and other fundamental risks may also undermine $AUDUSD upside progress. Get your $AUD market update from @ddubrovskyFX here: https://t.co/VAs2C3cpQj https://t.co/9mqJ0DSLZZ
  • Here is my trading video for the week ahead: '$EURUSD, #Pound, Volatility - The Biggest Risks and Opportunities Ahead' https://www.dailyfx.com/forex/video/daily_news_report/2019/10/19/EURUSD-Pound-Volatility---The-Biggest-Risks-and-Opportunities-Ahead-.html
  • $GBPUSD is on the verge of pushing above five-year resistance. A break above with follow-through may precede considerable upside movement. Get your GBP/USD market update from @ZabelinDimitri here: https://t.co/0qfh7TRWJn https://t.co/GImIwuGodX
  • The $AUD may resume its downtrend while the #ASX 200 stock index powers higher as dovish monetary policy drives interest rates lower. Get your market update from @IlyaSpivak here: https://t.co/UPlHZrt6c2 https://t.co/EIIf9xackw
  • (Fundamental Forecast) Australian Dollar Could Wilt if Brexit Delayed, Growth Risks Hang $AUDUSD #Brexit - https://www.dailyfx.com/forex/fundamental/forecast/weekly/aud/2019/10/19/Australian-Dollar-Could-Wilt-if-Brexit-Delayed-Growth-Risks-Hang.html?CHID=9&QPID=917702 https://t.co/2aOYhblN3g
  • The $USD faces selling pressure against the Malaysian Ringgit and Philippine Peso. More losses may be in store in $USDMYR as $USDPHP descends through rising support from 2013. Get your market update from @ddubrovskyFX here: https://t.co/t3kmFpmg1w https://t.co/miBrgxmtkA
  • $AUDJPY has launched yet another attempt to breach a multi-month downward trend resistance after failing to break above it in September. Will two consecutive defeats precede a reversal lower? Find out from @ZabelinDimitri here: https://t.co/b3nWUu0QZy https://t.co/Lj0ZSWOdp1
US Dollar Prices Risk Reversal. Fed Hike Bets May Hurt Nikkei 225

US Dollar Prices Risk Reversal. Fed Hike Bets May Hurt Nikkei 225

2018-08-28 23:00:00
Daniel Dubrovsky, Analyst
Share:

Asia Pacific Market Open – US Dollar Chart, S&P 500, Fed, NAFTA, CAD, DXY

  • European shares rejoice NAFTA progress at market open, CAD prices gains again
  • Rebound in US Dollar with Fed rate hike expectations pared a gap in the S&P 500
  • Nikkei 225, ASX 200 may fall boosting Yen. US Dollar could rise in the near-term

Find out what the #1 mistake that traders make is and how you can fix it!

Canadian Dollar prices continued to appreciate against their US counterpart as expected. USD/CAD, which is on its longest consecutive losing streak since late July, is pushing further away from the January line that kept its uptrend afloat. Gains in CAD took off as European shares came online, reacting positively to developments on NAFTA talks between the US and Mexico.

The improvement in market mood during that session lifted the sentiment-linked Australian and New Zealand Dollars. While the Euro Stoxx 50 was supported by automakers, which rejoiced the progress in trade developments, jubilant investors were somewhat thrown off during the US trading session. There local consumer confidence jumped to its highest since October 2000 (just about 18 years ago).

US Dollar prices, which were depressed as demand for the haven reserve currency slumped during the European session, quickly rebounded alongside government bond yields. This signaled firming Fed rate hike expectations which bodes ill for credit growth and thus stocks. Canada’s TSX Composite Index fell 0.78% while the S&P 500 pared most of its gap to the upside and finished little changed (+0.03%).

During Wednesday’s Asia Pacific trading session, there will once again be a lull in key economic events which places risk trends as the key drivers for markets. In that case, the Nikkei 225 and ASX 200 could see some weakness as they react to prospects of tightening global credit conditions, sending the anti-risk Japanese Yen higher.

Beyond that, CAD could continue finding more upside momentum as Canada’s Minister of Foreign Affairs Chrystia Freeland proceeds with more talks on trade Wednesday. She noted that they are “encouraged” by US, Mexico progress.

US Dollar Technical Analysis – Downside Momentum is Fading

DXY prices on the 4-hour chart have descended under the rising trend line that kept the US Dollar afloat since the middle of June. However, positive RSI divergence warns that downside momentum is fading fast and this may lead to a reversal or consolidation ahead. On the daily chart, US Dollar prices failed to close under the line. With that in mind, the pair may test resistance between 95.53 and 95.83 next. On the other hand, more declines has DXY facing the July 26th low at 94.08.

DXY Prices 4-Hour Chart

Chart created in TradingView

US Trading Session

US Trading Session

Asia Pacific Trading Session

US Dollar Prices Risk Reversal. Fed Hike Bets May Hurt Nikkei 225

** All times listed in GMT. See the full economic calendar here

FX Trading Resources

--- Written by Daniel Dubrovsky, Junior Currency Analyst for DailyFX.com

To contact Daniel, use the comments section below or @ddubrovskyFX on Twitter

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

DISCLOSURES

News & Analysis at your fingertips.