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.

Free Trading Guides
EUR/USD
Mixed
Oil - US Crude
Mixed
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
Mixed
GBP/USD
Mixed
USD/JPY
Bullish
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
  • 🇬🇧 Markit/CIPS Manufacturing PMI Final Actual: 40.7 Expected: 40.7 Previous: 32.6 https://www.dailyfx.com/economic-calendar#2020-06-01
  • Sharp risk-off reversal after #China is reported to halt some US agriculture imports amid #HongKong tensions & #TradeWar escalation. #AUD, #NZD and #SP500 futures down. #USD and #JPY up. https://t.co/2uwoEalx62
  • Heads Up:🇬🇧 Markit/CIPS Manufacturing PMI Final due at 08:30 GMT (15min) Expected: 40.7 Previous: 32.6 https://www.dailyfx.com/economic-calendar#2020-06-01
  • China is said to halt some US soy imports as tensions rise
  • U.S. Market Analyst at https://t.co/JsVsSlWDSh, Shain Vernier covers - ✔️ Safe haven assets in volatile markets ✔️ Central banks and governments ✔️ How will commodities trade in a recession Only on Trading Global Markets Decoded #podcast. Tune in here: https://t.co/1UmEzEt7a6 https://t.co/VVnzXqhl9r
  • 🇩🇪 Markit Manufacturing PMI Final Actual: 36.6 Expected: 36.8 Previous: 34.5 https://www.dailyfx.com/economic-calendar#2020-06-01
  • What's been driving #gold strength and #USD weakness since the middle of last week, a move that has seemingly ignored the back/forth on #USChina tensions? Here's a theory: domestic US unrest is fueling bets on more #Fed easing. https://t.co/UM8tftiSh6
  • 🇮🇹 Markit/ADACI Manufacturing PMI Actual: 45.4 Expected: 37.1 Previous: 31.1 https://www.dailyfx.com/economic-calendar#2020-06-01
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.58%, while traders in US 500 are at opposite extremes with 75.21%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/bTOdRb5PFb
  • Heads Up:💶 Markit Manufacturing PMI Final due at 08:00 GMT (15min) Expected: 39.5 Previous: 33.4 https://www.dailyfx.com/economic-calendar#2020-06-01
Video: When and How Will the Dollar Break its Congestion

Video: When and How Will the Dollar Break its Congestion

2015-02-25 00:27:00
John Kicklighter, Chief Strategist
Share:

Talking Points:

• Following a seven consecutive month rally, the USDollar has turned to tight congestion

• Waiting for a top catalyst like the FOMC decision is too far out to suspect as this pattern's spark

• A break may not come from a top theme, but there are options for a downtime move for either direction

Want to test out all the premium tools and resources FXCM has to offer? We are holding an Open House

The 10-day rate of change on the USDollar is lowest we've seen in four months. After a seven month climb, the benchmark currency has spent the past four-weeks consolidating in a tight range. This same congestion is obvious across majors like EURUSD, AUDUSD and USDJPY. While the medium-term view is still favorable for the Greenback, the short-term has wrung much of the premium out of the currency's primary catalyst - favorable monetary policy bearings. See a significant change in this theme would likely take a more significant update than major events we've seen recently - NFPs, 4Q GDP, Yellen testimony. The next FOMC rate decision may turn the tide, but that is three weeks out. Short of a shift towards 'risk' theme or an unexpected, high profile event that stirs rate speculation; a technical break may have to develop against a consolidation-type (technical and fundamental) backdrop. In today's Strategy Video, we look at what such a break for the Dollar would look like and which pairs are better positioned for a bullish or bearish outcome.

Sign up for John’s email distribution list, here.

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

DISCLOSURES

News & Analysis at your fingertips.