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
EUR/USD
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
Oil - US Crude
Bullish
Wall Street
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
GBP/USD
Bullish
USD/JPY
Bearish
More View more
Real Time News
  • Why financial market traders must monitor both monetary and fiscal policy? Find out from @MartinSEssex here:https://t.co/Fkzk88Y5gm https://t.co/beKjEODs2y
  • RT @RichDvorakFX: @Investingcom Seems to me like investors ‘high’ on central bank liquidity are fiending for more and staring down the edge…
  • Get your snapshot update of the of relative currency strength and exchange status from around the globe here: https://t.co/DmhBkd4B0k https://t.co/b8RNJQKE1m
  • The Spinning Top candlestick pattern forms part of the vast Japanese candlestick repertoire with its own distinct features. Gain a better understanding of the spinning top candlestick here: https://t.co/yXomAftdv8 https://t.co/wOQAHZVnxB
  • Forex trading, which is the act of exchanging fiat currencies, is thought to be centuries old – dating back to the Babylonian period. Learn about the history of Forex here:https://t.co/ePTJlbUP7c https://t.co/WS2LkCt9gX
  • Two major events will dominate #Euro trading in the coming week: an #ECB meeting on Eurozone monetary policy, followed by an #EU summit to reach agreement on a recovery fund. Get your #currencies update from @MartinSEssex here: https://t.co/wnXjTDizMv https://t.co/tmxDfkgmSv
  • There are many different types of forex orders, which traders use to manage their trades. While these may vary between different brokers, there tends to be several basic FX order types all brokers accept. Learn about different FX order types here: https://t.co/lIJdiz4xSz https://t.co/UQRaKusFP7
  • The continuity seen across these volatility cycles is a good thing. Historical precedence offer a blueprint for identifying conditions supportive for a vol-event to occur, and how they may unfold. Deepen your knowledge of historical volatility here:https://t.co/vg7w10la3j https://t.co/nUvvI3WQpx
  • Australian Dollar is up fractionally this week with Aussie stalling just below the yearly range highs. Here are the levels that matter on the $AUDUSD technical chart. Get your #currencies update from @MBForex here: https://t.co/jYzBK1qH4s https://t.co/gYj4tFbsGS
  • What is the road ahead for equities this coming week? Check out my fundamental outlook below! #DowJones #SP500 #DAX30 #FTSE100 https://www.dailyfx.com/forex/fundamental/forecast/weekly/title/2020/07/11/Dow-Jones-SP-500-DAX-30-FTSE-100-Outlook-Stocks-Week-Ahead.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/HjIBDKqwvO
Proliferation of EURUSD Parity Calls Indicates Sentiment Extreme

Proliferation of EURUSD Parity Calls Indicates Sentiment Extreme

2015-01-09 21:08:00
Jamie Saettele, CMT, Sr. Technical Strategist
Share:
  • EURUSD first long term bearish breakout attempt
  • AUDUSD small range weekly reversal at long term support zone
  • USDJPY wider consolidation could materialize

--Subscribe to Jamie Saettele's distribution list in order to receive a free report to your inbox thrice a week.

EUR/USD

Weekly

Proliferation of EURUSD Parity Calls Indicates Sentiment Extreme

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

Automate trades with Mirror Trader

-“BIG picture, monthly RSI has broken out of a triangle pattern. Sometimes, a pattern breakout in momentum (or OBV) precedes the breakout in price. The development’s implications are obviously significant.”

-EURUSD has now taken out the 2012 and 2010 lows. Only the 2005 low remains before ‘free-fall’ territory towards the 61.8% retracement of the rally from the 2000 low near 1.12. Given insanely one sided sentiment for an extended period of time however, this first attempt at the 2005 low may fail and give way to a much needed countertrend move.

-A number of calls for parity have been published recently. While the long term pattern suggests an eventual print near .90 (in 2016 or 2017), the sudden aggressively bearish calls come just after a record small speculator short position and record open interest in euro futures was recorded in November. The same COT profile was evident in May 2012, before the EURUSD bottomed in July. Aggressive forecasts are often published when it’s popular to do so, which means that the trend is embedded in the public consciousness to the point of extremity. The path to .90 or so won’t be smooth.

GBP/USD

Weekly

Proliferation of EURUSD Parity Calls Indicates Sentiment Extreme

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

Automate trades with Mirror Trader

-“A period of congestion may be in order as price has bounced from near the 50% retracement of the advance from the 2013 low but the drop under 1.6050 produces a pivot high on 9/19 and allows one to draw a downward sloping channel.”

-Like EURUSD, GBPUSD is at a long term support and this is a good spot for a rebound.

AUD/USD

Weekly

Proliferation of EURUSD Parity Calls Indicates Sentiment Extreme

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

Automate trades with Mirror Trader

-“AUDUSD was unable to hold a long term parallel. The risk is for lower prices with the May 2010 low at .8067 and the 2005 high at .7986 of interest as supports”.

-AUDUSD dipped as low as .8031 this week, which is within the .7927-.8067 long term support zone (2010 low to 50% of rally from 2001 low with 2004 and 2005 lows in between). A small range weekly key reversal is present, which may set the stage for a recovery.

NZD/USD

Weekly

Proliferation of EURUSD Parity Calls Indicates Sentiment Extreme

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

Automate trades with Mirror Trader

-NZDUSD is bouncing from the October 2009 high but one can’t help but notice that a major double top is possible with a target of .5898. That would trigger on a drop below .7370. Near term, consolidation since September could be taking the form of a triangle or flat.

USD/JPY

Weekly

Proliferation of EURUSD Parity Calls Indicates Sentiment Extreme

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

Automate trades with Mirror Trader

-“USDJPY has reached touched its 20 DMA for the first time since late October. Conditions are much more extreme than they were last year at this time but the 20 DMA propelled USDJPY higher last December before the big January decline.”

-USDJPY held up into the New Year and said January decline is underway. A sideways pattern could take hold between roughly 117 and 120.

USD/CAD

Weekly

Proliferation of EURUSD Parity Calls Indicates Sentiment Extreme

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

Automate trades with Mirror Trader

-“USDCAD has propelled higher and is probably headed into upper parallels. Levels of interest on the upside are 1.1666 (Fibonacci) and 1.1723 (June 2009 high).”

-USDCAD took out both mentioned levels and is now testing the 2007 high and major upper parallel (the 61.8% extension of the 2007-2009 rally from the 2011 low is at 1.1882 as well). If a pullback is going to materialize, then it likely happens from here.

USD/CHF

Weekly

Proliferation of EURUSD Parity Calls Indicates Sentiment Extreme

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

Automate trades with Mirror Trader

-“USDCHF has traded into median line support and former congestion (.9300-.9430). Start looking higher again. .9580 is resistance within the range and .9400/30 is support. A target level in the event of a new high is .9750.”

-USDCHF exceeded its .9750 objective and has continued into a line that extends off of the 2008 and 2010 highs. The line that extends off of the 2005 and 2008 highs is at about 1.0300. Bottom line; here to 1.0300 is resistance for a pullback.

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

DISCLOSURES

News & Analysis at your fingertips.