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
Wall Street
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
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
More View more
Real Time News
  • US Dollar Price Action Setups: EUR/USD, GBP/USD, AUD/USD https://www.dailyfx.com/forex/fundamental/daily_briefing/session_briefing/daily_fundamentals/2021/09/16/US-Dollar-Price-Action-Setups-EUR-USD-EURUSD-GBP-USD-GBPUSD-AUD-USD-AUDUSD.html https://t.co/w262MKMg5c
  • Goldman Sachs upgrades Q3 GDP forecast to 4.5% from 3.5%
  • I will note that despite AMC announcing they would soon be accepting additional cryptocurrencies (including Litecoin) for purchases, $LTCUSD didn't even exhibit a fraction of its response to the fake Walmart news. Market learning its lesson or AMC seen as irrelevant? #Kodakmoment
  • While the S&P 500 is holding to a strict range above its 50-day SMA, volatility for the Dollar has picked up on retail sales. DailyFX's @JohnKicklighter discusses trade today and further out! https://t.co/ZGNx4sLdRP
  • Canadian #Dollar Outlook: $USDCAD Breakout Imminent- #Loonie Levels - https://t.co/VgefzkPC7c https://t.co/8yhm8dNOzq
  • S&P falling from resistance zone after another quick test at the 930 open could be one of those bearish engulf kind of days $SPX $SPY $ES https://t.co/CAekc1CbCQ https://t.co/RCqrQ9bGNN
  • The members of the FOMC, as well as all elected officials, should be forced to put their investments into a blind trust. “If men were angels…” as Madison said. https://t.co/2Pb8qNu20A
  • @JohnKicklighter ah, right you are. They were far too hurried in 12 to be enjoying a show.
  • $EURJPY testing support from a long-term trendline projection, helping to cauterize the low for today https://t.co/QwdDvyhNB6
  • @JStanleyFX Technically, that is an Ocean's 11 still and the Quote is from Ocean's 12, but I'll allow it. Horseshoes and hand grenades
EURUSD Backing-and-Filling, 'Bull-flag' Coming into View

EURUSD Backing-and-Filling, 'Bull-flag' Coming into View

Paul Robinson, Strategist

What’s inside:

  • EURUSD chopping lower in constructive fashion, building a ‘bull-flag’
  • Probe of confluent support could mark the end of the correction
  • On a bull-flag breakout, the US Dollar Index (DXY) to probe deeper into long-term support

Check out our new Trading Guides page for both market forecasts and educational content.

Last week, trading in EURUSD was dominated by choppy back-n-forth price action. On three different days the euro traded below the prior week’s low of 11689, and each time it rejected lower prices and closed the session with a bounce. Overall, since topping out around the 2010 low near 11900 the euro has been constructively working off overbought conditions. This is viewed as a positive for the intermediate-term outlook, but still holds a bearish tilt in the very short-term. While the current configuration could be considered a valid ‘bull-flag’, some more chop within the confines of the descending channel (‘bull-flag’) will do some good in terms of building a stronger, more mature pattern. A drop to the April trend-line and lower parallel near the 2016 high of 11616 would make for a good final test of confluent support within the bullish sequence. In the event we see a breakout above the upper parallel, focus will quickly shift towards 11910 and a higher high towards the 2012 low at 12041, and possibly higher.

EURUSD: Daily

EURUSD Backing-and-Filling, 'Bull-flag' Coming into View

Turning focus to the US Dollar Index (of which the euro holds a ~57% weighting), the DXY is trading in a major long-term zone of support. It’s towards the upper end of this zone, so a probe even deeper into support would be the outcome on another surge in the euro. The dollar has few backers these days, with bearishness clearly escalating to a point where the scale may soon tip in favor of a reversal. The one-sided trade into major long-term support could soon present a material, tradeable low in the not-too-distant future. This of course means the euro will get turned upside down and set in motion a decline unlike anything we’ve seen in recent months.

US Dollar Index (DXY): Monthly

EURUSD Backing-and-Filling, 'Bull-flag' Coming into View

The bottom line for this coming week – EURUSD looks poised to continue choppy-trade with a slightly bearish bias within the confines of the channel, perhaps only providing the nimble short-term trader with opportunities to fade minor price swings. However, in the event we see a firm break above the upper parallel of the maturing bull-flag, the end of the correction will likely be over and another (possibly final) surge higher for the single-currency could be in store. To undermine this outlook, it would require a breakdown below the before-noted support surrounding 11600. At that juncture, a broader rebound in the US dollar will likely be in the works.

Live events are held daily by DailyFX analysts, for a full line-up see the Webinar Calendar.

---Written by Paul Robinson, Market Analyst

You can receive Paul’s analysis directly via email bysigning up here.

You can follow Paul on Twitter at@PaulRobinonFX.

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

DISCLOSURES