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.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
Wall Street
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
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
  • The S&P 500, Dow Jones and DAX 30 could be at risk of falling as retail traders continue increasing their upside exposure in these indices. What are the key technical levels to watch for? Find out from @ddubrovskyFX here:
  • RT @FxWestwater: New Zealand Dollar Outlook: $NZDUSD Drops on US Dollar Bids, Wall Street Losses Link: https://t.c…
  • The US Dollar continues to hold its ground against most ASEAN currencies as recent downtrends lose momentum. What is the road ahead for USD/SGD, USD/THB, USD/PHP and USD/IDR? Find out from @ddubrovskyFX here:
  • 🇳🇿 Business NZ PMI (AUG) Actual: 40.1 Previous: 62.6
  • The Canadian Dollar has been caught in broad ranges against the Euro and the US Dollar, but can the upside bias in USD/CAD and EUR/CAD prolong? Find out here:
  • RT @BrendanFaganFx: Bitcoin Outlook: Crypto Adoption to Become Widespread in Wake of El Salvador, AMC? #Bitcoin #Ethereum $AMC $BTCUSD $ET…
  • Heads Up:🇳🇿 Business NZ PMI (AUG) due at 22:30 GMT (15min) Previous: 62.6
  • The 10-day range and realized volatility (ATR) on $USDMXN are the lowest since 2008 and 2014 respectively. Breakout risk is high - when the right spark comes along (eg FOMC)
  • Bitcoin taking a breather today after rallying back above $47,000. 50-day MA crosses back above the 200-day MA $BTCUSD #Bitcoin
  • AUD/USD extends the decline following the larger-than-expected contraction in Australia employment as fresh data prints coming out of the US fuel speculation for an imminent shift in monetary policy. Get your $AUDUSD market update from @DavidJSong here:
A "Classic" CAD/CHF Set-up with a Modern Trigger

A "Classic" CAD/CHF Set-up with a Modern Trigger

Kaye Lee, Head Forex Trading Instructor

Talking Points:

  • Possible False Breakout in CAD/CHF
  • Key Resistance Zone for Initiating New Shorts
  • A Non-Traditional Entry Signal to Watch for

Markets will periodically cycle through phases of extreme profitability liberally interspersed with times of prevailing inaction. The latter condition appears to be ruling today.

At the time of writing near the London open, only one trade of interest is occurring in the FX cross pairs, and that in itself sends up a warning signal. Although this CADCHF set-up is, in a sense, a “textbook” trade opportunity, it is worth using some caution, as the broader market is still uncertain.

The daily chart of CADCHF below has begun a familiar interaction with a pair of declining lines of resistance and has already broken out above the first of the two. As always, it is far wiser to assume that the initial break is a false one and that the prevailing trend will continue, at least until the line of resistance-turned-support has been retested and prices show further signs of turning around.

Guest Commentary: False Breakout on CAD/CHF Daily Chart

Price action on the daily chart of CAD/CHF has broken above a declining trend line in what could be a false breakout.

It was relatively easy to derive a zone of resistance for the pair using the four-hour chart below, and as shown, price has already begun to interact with that zone. The desired move is marked on the chart, and assuming the daily downtrend resumes, a retest of the low would give this trade at least 120 pips of potential movement, if not more.

Guest Commentary: CAD/CHF Tagging Key Resistance Zone

The 4-hour chart of CAD/CHF shows price already interacting with a key resistance zone where new short positions may be initiated.

The zone in question is 0.7932-0.7971, which represents 39 pips of risk. Although that is not outstanding in terms of overall risk profile, it is acceptable nonetheless, especially when considering the broader market environment.

The trigger is to be taken on the hourly chart below, although this set-up may require an alternative method for recognizing bearish reversal divergence.

Many experienced traders are most likely versed in the traditional method, where price has to make a higher high before turning around. However, divergence can also occur on a closing basis, and as long as the current high closes above the previous one, and the oscillator makes a lower high, that is an acceptable signal, too.

Guest Commentary: A Non-Traditional Short Signal for CAD/CHF

The bearish reversal divergence potentially required to trigger a short entry in CAD/CHF may occur on a closing basis, as opposed to intraday.

There are select reasons why this method is actually even more valid than the traditional one, the first one being that practically all common oscillators take into account the closing price for their calculation, not the highs or lows. Thus, it is more accurate to compare closing highs to oscillator highs.

In practice, there is only an occasional discrepancy between the two methods, but today's trade may well develop into one of those exceptions. Notice also that the pin bar on the previous high was exceptionally long-tailed.

Of course, the trigger may also come by way of a pin bar or bearish engulfing pattern on the hourly chart. As usual, two or three tries may be required to gain entry in this trade, but given the general market environment, it would be ill-advised to try more than twice.

By Kaye Lee, private fund trader and head trader consultant,

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