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
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
GBP/USD
Bearish
USD/JPY
Bullish
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
Bearish
Oil - US Crude
Bearish
Bitcoin
Mixed
More View more
Real Time News
  • LIVE NOW: Join Currency Strategist @PaulRobinsonFX as he runs through his favorite charts and potential set-ups for the week ahead in the FX and CFDs market. Register here: https://www.dailyfx.com/webinars/108721147?CHID=9&QPID=917720
  • Have central banks run out of ammo? And where are central banks headed? Find out from Cross-asset class trader, @JohnNetto only on Trading Global Markets Decoded #podcast with @MartinSEssex here: https://t.co/Twr44cZ1GB https://t.co/iFowV6YBBj
  • LIVE IN 30 MIN: Join Currency Strategist @PaulRobinsonFX as he runs through his favorite charts and potential set-ups for the week ahead in the FX and CFDs market. Register here: https://www.dailyfx.com/webinars/108721147?CHID=9&QPID=917720
  • AUD/USD Technical Analysis: Choppy Aussie Dollar Still Aims Lower - https://www.dailyfx.com/forex/technical/home/analysis/aud-usd/2019/12/06/AUDUSD-Technical-Analysis-Choppy-Aussie-Dollar-Still-Aims-Lower.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Spivak&utm_campaign=twr #AUDUSD #technicalanalysis https://t.co/uE75UEjmIj
  • Join @PaulRobinsonFX 's #webinar at 5:30 AM ET/10:30 AM GMT as he goes over London #FX & #CFD charts for the next week. Register here: https://t.co/CoMkMA0pdF https://t.co/w52tn0x11T
  • The $JPY has, at last, made some clear headway against the US Dollar, but its bulls have yet to nail down their channel break. Get your market update from @DavidCottleFX here:https://t.co/ADgQ3idxYJ https://t.co/nZzXEfImw6
  • Have you joined @DailyFX @facebook group yet? Discuss your #forex strategies and brush up on your skills with us here: https://t.co/jtY1G7g8yx https://t.co/M7hQiSBOQy
  • CHF Switzerland Nov Foreign Currency Reserves Actual: 782.9b Previous: 779.1b
  • The $NZD short sharply higher against its US counterpart but technical positioning suggests the long-term downtrend remains firmly intact. Get your market update from @IlyaSpivak here:https://t.co/D616tdcZdp https://t.co/4xBdgosNzM
  • Join our analysts for live, interactive coverage of all major, market-moving economic data at DailyFX webinars. https://www.dailyfx.com/webinars?re-author=Cottle?utm_source=Twitter&utm_medium=Cottle&utm_campaign=twr
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.