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
EUR/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
Oil - US Crude
Bullish
Wall Street
Bearish
Gold
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
GBP/USD
Bearish
USD/JPY
Mixed
More View more
Real Time News
  • Rollover is the interest paid or earned for holding a currency spot position overnight. Learn how to earn rollover interest on your open positions here: https://t.co/SRsG8CxjEn https://t.co/ITdDUGoAL0
  • Knowing how to accurately value a stock enables traders to identify and take advantage of opportunities in the stock market. Find out the difference between a stock's market and intrinsic value, and the importance of the two here: https://t.co/QszmdZFxlk https://t.co/eF0XS79LgK
  • 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/gaYbbaTnpb
  • Get your snapshot update of the of relative currency strength and exchange status from around the globe here: https://t.co/H19vRDCpUJ https://t.co/HCvzbjEkr6
  • Get our analysts’ view on the key fundamentals for indices in Q2. Download now. https://t.co/Etdyanp76f https://t.co/n2wxfyMsJt
  • 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/DWm7cBMUg9 https://t.co/5KaUvfGM4I
  • There’s a strong correlation between interest rates and forex trading. Forex is ruled by many variables, but the interest rate of the currency is the fundamental factor that prevails above them all. Learn how interest rates impact currency markets here: https://t.co/J0EPMD2Cfi https://t.co/9Bjkh5413e
  • 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/FqAsp91Gia
  • A currency carry trade involves borrowing a low-yielding currency in order to buy a higher yielding currency in an attempt to profit from the interest rate differential. Find out if the carry trade suits your trading style here: https://t.co/7t4BzmLg8w https://t.co/cKOUmtj7Dj
  • 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/TnL91f7sl7
Dollar Bulls See Pressure From All Sides As Confidence Erodes

Dollar Bulls See Pressure From All Sides As Confidence Erodes

Tyler Yell, CMT, Currency Strategist

What Happened To King Dollar? Get A Free DFX Q2 Market Forecast HERE

Talking Points:

Another year, another disappointing start to the DXY. Much like in January 2016 after the Federal Reserve raised the reference rate the month prior for the first time since 2006, the USD is not providing the follow through that many had hoped would come through. Now, looking at the options market for sentiment clues and the charts, it’s fair to say the DXY stands on a medium term brink of decisiveness worth watching.

Traders hoping for a turn-around in USD are likely better positioned by taking a short-EM view as opposed to DM FX given the recent catalyst and potential catalysts for varying DM currencies like JPY, EUR, & GBP. Of course, DXY has a heavy weighting towards DM currencies with the heaviest weighting favoring EUR direction.

On the chart, the key points worth watching on the downside is the YTD low at 98.86, which aligns with the Trendline seen on the chart is below drawn off the May low. Beyond the May Trendline, we could see a move toward the multiple 100% extensions (ABC moves lower) between 97.95/66 that could still indicate a deep pullback in a longer-term uptrend, a view many traders still hold.

If the price breaks the May Trendline as well as the confluence of 100% extension in the upper half of 97, we could begin to see the unraveling of sentiment for longer-term Bulls. In the options market, we continue to see medium term (3-month) outlooks deteriorate. Per Bloomberg, the weighted 3-month 25-delta risk reversal currently shows the smallest premium for calls relative to puts at 60bps since August 2016.

We would likely need to see a close above the confluence of resistance at 101 to expect to see the Bulls rush in. Until then, we’ll follow the yields and look for a move lower in DXY.

Interested In Seeing How retail traders’ Are Exposed In Key Markets? Find out here!

Dollar Bulls See Pressure From All Sides As Confidence Erodes

Chart Created by Tyler Yell, CMT

---

Shorter-Term DXY Technical Levels: Wednesday, April 19, 2017

For those interested in shorter-term levels of focus than the ones above, these levels signal important potential pivot levels over the next 48-hours.

Dollar Bulls See Pressure From All Sides As Confidence Erodes

Written by Tyler Yell, CMT, Currency Analyst & Trading Instructor for DailyFX.com

To receive Tyler's Closing Bell articles directly via email, please SIGN UP HERE

Contact and discuss markets with Tyler on Twitter: @ForexYell

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

DISCLOSURES