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
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
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
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
Gold
Bearish
GBP/USD
Bullish
USD/JPY
Bearish
More View more
Real Time News
  • Forex quotes reflect the price of different currencies at any point in time. Since a trader’s profit or loss is determined by movements in price, it is essential to develop a sound understanding of how to read currency pairs. Learn how to read quotes here: https://t.co/CNtqrLeetw https://t.co/1w7E3aiWV1
  • A “PIP” – which stands for Point in Percentage - is the unit of measure used by forex traders to define the smallest change in value between two currencies. Learn how to understand pips in forex here: https://t.co/AfAhmI7kAV https://t.co/JiZPRZzwgo
  • RT @IGSquawk: Crypto update: #Bitcoin 56398.30 -7.34% #Ether 2213.91 -7.42% #BitcoinCash 925.49 -12.24% #EOS 6.8039 -15.98% #Stellar 0.5276…
  • 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/BdgFmkzWwW https://t.co/rJUm1W9wrc
  • It’s important for traders to be familiar with FX spreads as they are the primary cost of trading currencies. Understand a pair's spread here: https://t.co/zEEUHZjVIG https://t.co/oZPoyPH2iw
  • Using margin in forex trading is a new concept for many traders, and one that is often misunderstood. Margin is the minimum amount of money required to place a leveraged trade and can be a useful risk management tool. Learn about margin trading here: https://t.co/qZCE5asCzM https://t.co/yN1I9FrfIS
  • 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/5l3O9aHQbL https://t.co/DFEfCIl7zF
  • Thin liquidity can concentrate volatility and nowhere is that more evident than with Dogecoin. $DOGEUSD was down as much as 38% today. Watch for heightened bouts of volatility amid quiet risk trends in the week ahead: https://www.dailyfx.com/forex/video/daily_news_report/2021/04/17/Dollar-Outlook-Ties-Into-Key-Data-Rate-Forecasts-and-Even-Dogecoins-Rally-.html https://t.co/JO7O7zUKe9
  • It’s important for traders to be familiar with FX spreads as they are the primary cost of trading currencies. Understand a pair's spread here: https://t.co/zEEUHZjVIG https://t.co/Vv3jZNbLWg
  • 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/BdgFmkzWwW https://t.co/9j004hyzUZ
USD Technical Analysis: DXY Heading for New Lows, EUR/USD Rallying

USD Technical Analysis: DXY Heading for New Lows, EUR/USD Rallying

Paul Robinson, Strategist

USD Technical Outlook

  • US Dollar Index (DXY) breaking down in-line with trend
  • Extending towards worst levels since 2018
  • EUR/USD leading the DXY lower as it rises out of pattern
Advertisement

USD eyeing Jan lows, worst since 2018

The U.S. Dollar Index (DXY) is at its worst levels since early Jan, now eyeing the lows of the year and lowest levels since 2018. A breakdown below 89.20 will have important macro levels in play from a few years back.

The low of 2018 was 88.25, a level we could see in the near-term that has potential to have longer-term ramifications. Generally speaking, the dollar hasn’t gone anywhere since 2015, up or down. There have been plenty of strong calls in both directions by keen market observers and participants, but generally neither side has been right as a big range develops.

That could change, though. Or continue. A break below the 2018 low may usher in another wave of selling, while a hold could turn things around for the USD. It would mean we are still in a macro range, but there would be plenty of upside for the DXY to rise before reaching the top of the range near 104.

For now, the focus is on how price action behaves at the Jan low of 89.20, and from there the 88.25 2018 low. Should we see the DXY reject at support, it could lead to a bounce. But there is some work to be done to turn the picture bullish for the index.

USD Forecast
USD Forecast
Recommended by Paul Robinson
Check out the Q1 USD Forecast
Get My Guide

US Dollar Index (DXY) Daily Chart (trading bias is negative)

USD index

DXY Chart by TradingView

EUR/USD is 57% of the DXY, and as such it is the leader. With it rising out of an inverse head-and-shoulders pattern (DXY is doing similar in reverse), the high at 12349 is in view. For short-term trades, the channel developing off the monthly low could be a good guide. Stay above the lower parallel and the trend is higher, break below and the outlook turns neutral at the least. On the top-side the 2018 high is 12555, a big level as is the 88.25 DXY level.

EUR/USD 4-hr Chart (eyeing 12349)

EUR/USD 4-hr chart

EUR/USD Chart by TradingView

Resources for Forex Traders

Whether you are a new or experienced trader, we have several resources available to help you; indicator for tracking trader sentiment, quarterly trading forecasts, analytical and educational webinars held daily, trading guides to help you improve trading performance, and one specifically for those who are new to forex.

---Written by Paul Robinson, Market Analyst

You can follow Paul on Twitter at @PaulRobinsonFX

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

DISCLOSURES