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
Mixed
Oil - US Crude
Mixed
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
Gold
Mixed
GBP/USD
Bullish
USD/JPY
Bullish
More View more
Real Time News
  • 🇳🇱 Inflation Rate YoY (APR) Actual: 1.9% Expected: 1.7% Previous: 1.9% https://www.dailyfx.com/economic-calendar#2021-05-11
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 88.89%, while traders in Wall Street are at opposite extremes with 77.13%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/sV6ncqn10p
  • The Consumer Price Index, better known by the acronym CPI, is an important economic indicator released on a regular basis by major economies to give a timely glimpse into current growth and inflation levels. Learn how to better understand CPI here: https://t.co/nAa0fHHGbZ https://t.co/xkNb1VIrEN
  • Forex Update: As of 04:00, these are your best and worst performers based on the London trading schedule: 🇪🇺EUR: 0.10% 🇨🇦CAD: 0.08% 🇨🇭CHF: 0.06% 🇦🇺AUD: 0.03% 🇳🇿NZD: -0.03% 🇯🇵JPY: -0.08% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/hxMR9a5jxI
  • Heads Up:🇳🇱 Inflation Rate YoY (APR) due at 04:30 GMT (15min) Expected: 1.7% Previous: 1.9% https://www.dailyfx.com/economic-calendar#2021-05-11
  • Indices Update: As of 04:00, these are your best and worst performers based on the London trading schedule: Wall Street: -0.25% US 500: -0.52% France 40: -1.12% Germany 30: -1.24% FTSE 100: -1.26% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/sAj0aetO3t
  • Retail FX traders (at IG) have pushed up their long $USDCAD position to levels not seen in years which has nudged the net long to approximately 85% of open interest. They are fighting that trend https://t.co/eIOcdLiPik
  • Risk trends is the focus to start this week with the Nasdaq 100 dragging sentiment down through the close of the NY session. My attention is on the Dollar as pairs like $GBPUSD stare down major resistance or reversal: https://www.dailyfx.com/forex/video/daily_news_report/2021/05/11/EURUSD-GBPUSD-and-Nasdaq-Outlook-Key-Levels-and-Events-Ahead.html?ref-author=Kicklighter&QPID=917719&CHID=9 https://t.co/72GGBPMNcw
  • White House monitoring supply shortages in parts of the southeast -BBG
  • GDP (Gross Domestic Product) economic data is deemed highly significant in the forex market. GDP figures are used as an indicator by fundamentalists to gauge the overall health and potential growth of a country. Learn use GDP data to your advantage here: https://t.co/Yl9vM7kO6a https://t.co/RAtsYwpmXl
EUR Rebound Needs to Clear 1.2160- GBP Outlook Clouded by Weak GDP

EUR Rebound Needs to Clear 1.2160- GBP Outlook Clouded by Weak GDP

Michael Boutros, Strategist

Daily Winners and Losers

EUR_Rebound_Needs_to_Clear_1.2160-_GBP_Outlook_Clouded_by_Weak_GDP_body_Picture_7.png, EUR Rebound Needs to Clear 1.2160- GBP Outlook Clouded by Weak GDPEUR_Rebound_Needs_to_Clear_1.2160-_GBP_Outlook_Clouded_by_Weak_GDP_body_Picture_6.png, EUR Rebound Needs to Clear 1.2160- GBP Outlook Clouded by Weak GDPEUR_Rebound_Needs_to_Clear_1.2160-_GBP_Outlook_Clouded_by_Weak_GDP_body_Picture_5.png, EUR Rebound Needs to Clear 1.2160- GBP Outlook Clouded by Weak GDP

The euro is the strongest performing currency at the close of European trade with an advance of 0.55% on the session. Markets have taken a reprieve from the recent risk sell-off after remarks made by ECB policymaker Ewald Nowotny suggested that there is now a stronger argument to grant the European Stability Mechanism (ESM- Europe’s permanent bail-out fund) a banking license. While this step does little to address the underlying structural deficiencies within the union, the move temporarily eased liquidity concerns with yields on periphery debt softening in early US trade.

The EURUSD rebounded off the 50% Fibonacci extension taken from the June 29th and July 19th crests at 1.2060 before breaching above the bisector line of a descending Andrew’s Pitchfork formation. The advance encountered resistance at the July 13th low at 1.2160, with an RSI breach above former trendline support likely to fuel a rally up to channel resistance (currently around 1.2240). Our broader bias remains weighted to the downside with rallies in the single currency offering favorable short entry positions. A break below interim support at 1.2060 eyes our primary objective at the 61.8% extension at the 1.20-handle.

EUR_Rebound_Needs_to_Clear_1.2160-_GBP_Outlook_Clouded_by_Weak_GDP_body_Picture_4.png, EUR Rebound Needs to Clear 1.2160- GBP Outlook Clouded by Weak GDP

A look at the 30min scalp chart shows the EURUSD breaching above short-term channel resistance dating back to the July 19th high before rebounding of soft support at 1.2155. The pair is now testing the confluence of former channel resistance and the 38.2% extension at 1.2120, with a likely hold here eyeing interim resistance targets at 1.2155, the 23.6% extension at 1.22 and 1.2230. A break below interim support eyes subsequent targets at 1.2080, the 50% extension at 1.2060, 1.2030, and the key 61.8% extension at the 1.20-figure.

Key Levels/Indicators

Level/Indicator

Level

200-Day SMA

1.3033

100-Day SMA

1.2797

50-Day SMA

1.2459

2012 EUR High

1.3484

EUR_Rebound_Needs_to_Clear_1.2160-_GBP_Outlook_Clouded_by_Weak_GDP_body_Picture_3.png, EUR Rebound Needs to Clear 1.2160- GBP Outlook Clouded by Weak GDPEUR_Rebound_Needs_to_Clear_1.2160-_GBP_Outlook_Clouded_by_Weak_GDP_body_Picture_2.png, EUR Rebound Needs to Clear 1.2160- GBP Outlook Clouded by Weak GDP

The British pound is the weakest performer on the session with a decline of 0.21% on the session despite broader dollar losses. Second quarter GDP data released today has continued to weigh on the sterling after the report showed the UK economy contracting at an annual pace of 0.8%, far surpassing expectations for a contraction of just 0.3% y/y. The data suggests that the austerity measures recently implemented may be weighing on growth prospects with the scenario opening up the door for further easing measures from the BoE.

The GBPUSD remains within the confines of an ascending channel formation with losses likely to be limited over the next 24-hours amid ongoing dollar weakness. Daily resistance stands at the confluence of the 50-day moving average and the 38.2% Fibonacci extension taken from the June 1st and July 12th lows at 1.5590. A breach here targets the July high at 1.5736 backed closely by the 200-day moving average at 1.5743. Channel support currently rests around 1.5445 backed by long standing trendline support dating back to the January 2009 lows and the July low at 1.5390. Our medium-term bias remains neutral with long-term technicals suggesting further advances in the pair moving later in the year.

EUR_Rebound_Needs_to_Clear_1.2160-_GBP_Outlook_Clouded_by_Weak_GDP_body_Picture_1.png, EUR Rebound Needs to Clear 1.2160- GBP Outlook Clouded by Weak GDP

The scalp chart shows the GBPUSD rebounding off the 78.6% Fibonacci retracement taken form the July 12th advance at 1.5465. Soft resistance stands at 1.5490 backed by the key 61.8% extension at 1.5523, 1.5545, and the 50% extension at 1.5565. A break below interim support eyes subsequent floors lower at 1.5435 and the monthly low at 1.5390.

Key Levels/Indicators

Level/Indicator

Level

200-Day SMA

1.5743

100-Day SMA

1.5777

50-Day SMA

1.5584

2012 GBP LOW

1.5232

---Written by Michael Boutros, Currency Strategist with DailyFX.com

Review today’s Scalp Webinar for further insights and current trade setups

Join Michael on Thursday morning for a Live Scalping Webinar on DailyFX Plus (Exclusive for Live Clients Only) at 1400 GMT (10ET)

To contact Michael email mboutros@dailyfx.com or follow him on Twitter @MBForex

To be added to Michael’s distribution list, send an email with the subject line “Distribution List”

Introduction to Scalping Strategies Webinar

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

DISCLOSURES