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.

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
EUR/USD
Bullish
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
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
Mixed
GBP/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
USD/JPY
Mixed
More View more
Real Time News
  • It was a big week for Gold bulls and Gold prices broke out to fresh two-month-highs, finally taking-out the 1800 level along the way. Get your market update from @JStanleyFX here: https://t.co/D222Ni37Dv https://t.co/KcMYyx3Ro4
  • Currency exchange rates are impacted by several factors. Are different world leaders a contributing factor? Find out here: https://t.co/4jsORznRTE https://t.co/PjywaPeUsl
  • Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Learn about FX leverage here: https://t.co/BdgFmkRxVw https://t.co/AjOSPzOFLb
  • What are some trading takeaways from 2020, as we jump into the new year? Find out with your free guide here: https://t.co/e7udCTJlmf #DailyfxGuides https://t.co/eqklbOEJMa
  • Trading Forex is not a shortcut to instant wealth, excessive leverage can magnify losses, and sentiment is a powerful indicator. Learn about these principles in depth here: https://t.co/lZFM8youtX https://t.co/p9Pkkbo2zf
  • The docket thins out over the coming week, but there are a few serious market highlights that can make for some interesting opportunities in the week ahead. $GBPUSD has the technical chops and fundamental confluence (US CPI, UK GDP, etc) https://www.dailyfx.com/forex/video/daily_news_report/2021/05/08/Dollar-Tumbles-Dow-Hits-Record-Highs-and-Dogecoin-Traders-Tune-In.html https://t.co/BMUQ0xVOge
  • Risk management is one of the most important aspects of successful trading, but is often overlooked. What are some basic principles or risk management? Find out from @PaulRobinsonFX here: https://t.co/IsnpfIZNKr https://t.co/nBfJcptUDK
  • Dogecoin continues to trade higher with explosive energy, attesting to the cryptocurrency's new clout. Meanwhile, Bitcoin and Ethereum sink. Get your market update from @FxWestwater here:https://t.co/ohw714KqB2 https://t.co/EWxKoQykv1
  • Natural gas prices moved higher, capturing a long-term trendline that could support the heating commodity's price in the coming weeks as colder temps support fundamental side. Get your market update from @FxWestwater here:https://t.co/tGUDJE9hn0 https://t.co/nROsrJa1sv
  • The Euro may fall against the US Dollar amid a historically strong month for the Greenback and relative bond yield spreads. EUR/USD appears to be eyeing bearish technical warning signs. Get your $EURUSD market update from @ddubrovskyFX here:https://t.co/njTDk8Ehoi https://t.co/w4II63utz1
US Dollar Technical Forecast: USD Wedges into the Weekend

US Dollar Technical Forecast: USD Wedges into the Weekend

James Stanley, Senior Strategist

US Dollar Talking Points:

  • After a jump last week, the US Dollar settled down, spending the latter-half of this week building into a symmetrical wedge pattern.
  • Can USD bulls continue to push? After a fairly bearish outlay since March, the door may be opening for reversal themes in the Greenback, as looked at in the Q4 technical forecast.
  • The analysis contained in article relies on price action and chart formations. To learn more about price action or chart patterns, check out our DailyFX Education section.
Advertisement

It was a really busy week on the headlines and, at least initially, in the US Dollar. The latter portion of the week was like at least a little bit of a letdown, as the US Dollar spent the back-half of the week narrowing into a symmetrical wedge formation.

US Dollar Hourly Price Chart

USD Chart

Chart prepared by James Stanley; USD, DXY on Tradingview

Taking a step back, the big item around the Greenback this week was bulls taking a backseat after last week’s fresh two-month-highs.

As looked at coming into September, the US Dollar ran into a big spot of long-term, confluent support. That area helped to reverse the trend, at least for the first few weeks of September; and buyers pulled back as this week opened. That pullback took on a bit more pressure as sellers jumped with a bit more aggression on Tuesday, and that bearish theme lasted through early-Wednesday trade, as well.

But, as looked at on Wednesday, the US Dollar found support at a key spot on the chart, taken from around the 93.60 level on DXY. That price helped to hold the lows and that’s when this course of digestion began to set-hold.

US Dollar Four-Hour Chart

US Dollar 4 hour price chart

Chart prepared by James Stanley; USD, DXY on Tradingview

US Dollar Bigger-Picture

So, 2020… it’s been a pretty crazy year, and we’re still not even 80% of the way through it. But the US Dollar has been along for the ride, initially jumping-higher as the virus was getting priced-in; and then reversing all of that move and then some as calm was restored (at least in markets).

That big picture support that came into play on the first day of September was also the third and final zone of support looked at in the Q3 technical forecast. For Q4, I took a look at the other direction as a number of risks have stacked up; and the technical backdrop appears open for as such. The near-term look contributes little at this point, and for that bullish theme to continue showing promise, a hold of support around the 93.60 level that came into play this week can keep that door open. For invalidation – the subordinated support around the 92.71-92.79 area could function in this regard.

To get access to the Q4 technical forecast for the US Dollar, the link below will help to get that all set up.

US Dollar Monthly Chart

US Dollar Monthly Chart

Chart prepared by James Stanley; USD, DXY on Tradingview

--- Written by James Stanley, Strategist for DailyFX.com

Contact and follow James on Twitter: @JStanleyFX

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

DISCLOSURES