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
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
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
USD/JPY
Bullish
Gold
Bullish
Oil - US Crude
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
Bitcoin
Mixed
More View more
Real Time News
  • #Gold prices may suffer if better-than-expected US economic data and progress on US-China trade negotiations cool 2020 Fed rate cuts and alleviate demand for anti-fiat hedges. Get your $XAUUSD market update from @ZabelinDimitri here: https://t.co/3ula2sUpqL $gld https://t.co/2iZwxcm3wP
  • What's the difference between leading and lagging indicators? Find out from @RichardSnowFX here:https://t.co/vGx8HCagF5 https://t.co/KCZ48rDnhy
  • Why financial market traders must monitor both monetary and fiscal policy? Find out from @MartinSEssex here: https://t.co/Fkzk88Y5gm https://t.co/tTXcw1b7Tp
  • RT @dlacalle_IA: ... “Temporary” Fed plans to double repo market intervention to avoid cash crunch https://t.co/j6N3Qmo6HX
  • RT @HeathaT: The @USTradeRep "fact sheet" on the US-China deal is pretty light on details, but if you're looking for something written down…
  • The inside bar pattern occurs regularly within the financial markets. Incorporating the inside bar strategy within a trading system can enhance a trader’s market analysis technique. Find out how you can use it from @WVenketas here: https://t.co/E3EWOYTYNw https://t.co/1H5UASpHb7
  • What is the best time to trade #forex? Find out: https://t.co/M9R46rmPUK #tradingstyle https://t.co/k6z9p9v4nY
  • The bear flag pattern is a popular price pattern used by technical traders within the financial markets to determine trend continuations. How can you trade a bearish flag pattern? Find out here: https://t.co/HfXdjTWdEi @WVenketas https://t.co/qV7J1mhGBi
  • Macro data from around the world have long attested to the urgent need for a trade settlement between the US and China. Increasingly the corporate numbers are saying the same. Get your market update from @DavidCottleFX here:https://t.co/Qon7QUO80c https://t.co/L1it36hFzw
  • RT @TaviCosta: The labor market has started to crack. ADP report leads annual change in unemployment rate with a 0.9 correlation. Equity…
Pre-ECB, NFP, FOMC Price Action Setups

Pre-ECB, NFP, FOMC Price Action Setups

2017-03-07 20:10:00
James Stanley, Currency Strategist
Share:

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

- The next week and a half produce a series of pivotal announcements for markets. On Thursday, the European Central Bank goes through another rate decision, on Friday we see the release of U.S. Non-Farm Payrolls and on Wednesday of next week – we hear from the Federal Reserve at a rate decision in which much of the world is expecting a rate hike.

- As we mentioned, it appears as though this Friday’s NFP print will be crucial for the Federal Reserve’s rate decision next week. This NFP print will likely garner considerable attention as continued strength in the U.S. Labor market could further signal a stronger rate hike path for the Federal Reserve. We first looked at the U.S. Dollar in a bullish, albeit more tame state than what we saw last week.

- We then looked at EUR/USD which is working on a near-term range formation ahead of Friday’s ECB meeting. The longer-term setup could possibly be conducive for bullish plays after bears were unable to drive with significant continuation below the long-term zone of support around 1.0500. The near-term side that’s most attractive would be the short-term resistance zone; but the longer-term setup that could garner more attention would be another test of 1.0500… If a 1.0500 support test comes into play around the latter portion of the ECB press conference, this could be attractive.

- We then looked at EUR/JPY as a potentially more attractive option for playing Euro-strength. The troubling fundamental aspect of longer-term EUR/USD bullish plays is the idea of being short-USD as the Federal Reserve is getting more hawkish on the prospect of ‘normalization’. This is not the ideal environment to be short the currency (USD); so looking to voice those long-Euro themes against the Yen could be a bit more attractive.

- We then moved over to look at U.S. Stocks via the S&P 500. Stocks finally caught a bit of softness after last week’s quick rush of strength. The big ‘activator’ for the bullish move in the S&P last week was a) John William’s comments about a potential rate hike in March and b) Donald Trump’s non-State of the Union Address (Joint Address to the Union).

But since then – as in, from Thursday on, stocks have had difficulty catching a bid. This likely has at least something to do with the Fed’s expected rate hike next week. But there may be more at play here.

- We looked at USD/JPY for long-USD plays. The longer-term symmetrical wedge is still at work, and we looked at an area around 113.20 that could be attractive for bullish-plays.

--- Written by James Stanley, Analyst for DailyFX.com

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

Contact and follow James on Twitter: @JStanleyFX

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

DISCLOSURES

News & Analysis at your fingertips.