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
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
More View more
Real Time News
  • You're Not The Only One Bored Of 'New' Apple iPhones https://t.co/T3ZXZ8wplw via @IBDinvestors
  • $USDCAD big test, right at the Sept. high https://t.co/D9baX3BGXf https://t.co/Sg2ySGIIY8
  • just about an hour later $USDCAD https://t.co/D9baX3BGXf https://t.co/B0c71AkZTl
  • Hedging Evergrande (3333 HK) is reportedly a near impossible task
  • Given there is a substantial risk from China's Evergrande situation with a possible technical default at the start of next week, I'll be watching Bitcoin as a 'risk' measure over the weekend. Here versus SPX as Shanghai Comp is 'tended to' https://t.co/OoudsWHFPy
  • The latest batch of US economic data suggests the economy is weathering delta variant concerns, increasing odds for a Fed taper announcement shortly. Get your market update from @CVecchioFX here:https://t.co/aioT8UU4IJ https://t.co/BhMSqkkV0E
  • $USD support hold at higher low $DXY now breakout after U of Mich Focus now shifts to the Fed for next week's rate decision. Quarterly meeting, so also getting an updated dot plot matrix and SEP https://www.dailyfx.com/forex/fundamental/daily_briefing/session_briefing/daily_fundamentals/2021/09/17/USD-price-action-us-dollar-rallies-to-sept-high-focus-shifts-to-the-Fed.html https://t.co/oJdrBqBkfp https://t.co/EsSn4XEB1g
  • another hit at resistance $ES $SPY $SPX that zone is 5 for 5 this week, catching resistance each day m-f (this morning was pre-us open) https://t.co/cchd5Rr92S https://t.co/wwXugBgE8m
  • US headline consumer sentiment survey from UofM picks up but less than expected 71 vs 72 expected and 70.3 previously. Expectations component advances to 67.1 from 65.1. Inflation forecasts still pushing their highs. Tepid Dollar and emini $SPX futures response thus far
  • 🇺🇸 Michigan Inflation Expectations Prel (SEP) Actual: 4.7% Previous: 4.6% https://www.dailyfx.com/economic-calendar#2021-09-17
Equity Reversal Put on Hold While Dollar, Pound, Yen Position

Equity Reversal Put on Hold While Dollar, Pound, Yen Position

John Kicklighter, Chief Strategist

Talking Points:

  • The 'risk aversion' potential gathering behind global equities last week has been brusquely disrupted
  • Common technical patterns and trade potential is developing cross Dollar, Pound and Yen crosses
  • Market conditions are still oriented towards shorter-term moves rather than trends, but technicals are alluring

See the DailyFX Analysts' 2Q forecasts for the Dollar, Euro, Pound, Equities and Gold as well as our favorite 2016 trading opportunities in the DailyFX Trading Guides page.

Fundamentals are still lacking for the power to generate conviction and market conditions are still oriented towards short-term swings interspersed with bouts of volatility. But some technical patterns are looking particularly persuasive. The most prominent convergence of technical and fundamental influence rested with global - particularly US - equities through this past week. A familiar head-and-shoulders pattern was building pressure for reversal cross the major indexes that could have tipped the animal spirits to a self-sustaining risk aversion. Alas, that weight fell through with the move higher in shares and 'risk' assets this week.

Risk trends are unlikely to generate a lasting bull trend given the fundamental headwinds the world faces, but it doesn't stall short-term moves from unfolding. The question is what areas of the market are properly tuned to take advantage of short-term speculative shifts. The Yen crosses offer a range of technical setups that are primed for near-term technical breaks, but the implications for follow through differ vastly from the short-term orientation of a pair like AUD/JPY and the more prominent inverse head-and-shoulders pattern GBP/JPY has developed.

Aside from risk trends and its 'agents' in the FX market, there are remarkable technical conditions behind Dollar and Pound pairs. The pictures once again range from big-picture, long-term opportunities to the concentrated and short-term. GBP/USD and EUR/GBP for example look appealing given their dominant patterns, but their longer-term hurdles can represent serious issues for follow through. In contrast, shorter-term AUD/USD, EUR/USD and USD/JPY moves may better suit our market conditions. We discuss these market conditions and their better suitors in today's Trading Video.

To receive John’s analysis directly via email, please SIGN UP HERE

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

DISCLOSURES