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
GBP/USD
Bullish
USD/JPY
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
Gold
Bullish
Oil - US Crude
Mixed
Bitcoin
Bearish
More View more
Real Time News
  • Asia’s vast and growing importance to the world economy is not yet matched by the presence of a currency trading center to rival the established order. Get your update on market drivers in Asia from @DavidCottleFX here: https://t.co/E2hqoRdO7q https://t.co/urMnUCq4fn
  • RT @markets: White-hot pot stocks have flamed out in spectacular fashion https://t.co/3GsVsRyZaZ
  • What is the best time to trade #forex? Find out: https://t.co/M9R46r5ewa #tradingstyle https://t.co/gJ1QDrox67
  • #Gold prices may be given a tailwind from the FOMC minutes and escalating trade war risks if they fuel demand for anti-fiat assets amid expectations of additional Fed easing. Get your $XAUUSD market update from @ZabelinDimitri here: https://t.co/OJ7WUY9W7E $gld https://t.co/kBp3opzptm
  • Why should you set trading goals? How can it help regardless of what your #tradingstyle is? Find out: https://t.co/AYdD7ODlv1 https://t.co/G0ftVurNNN
  • Manning the penalty box today...i hope there aren't too many visitors https://t.co/1y81Li7laL
  • Do you think your #tradingstyle is of a #FOMO trader? Find out how you can turn that to #JOMO? Find out: https://t.co/79Q4pYdVEd https://t.co/S82AOd5AeP
  • What are the truths and lies of #forex trading regardless of your #tradingstyle here: https://t.co/uF75VPzstr https://t.co/xJ808KvLxr
  • RT @PaulMDomenick: “But Paul, I don’t have a mentor!! Really? •Do you have YouTube? You have a mentor! •Do you have a bookstore? You hav…
  • Trade deal bets kept the Singapore Dollar, Philippine Peso, Indonesian Rupiah and Malaysian Ringgit afloat despite $USD strength. This is the key fundamental driver for #ASEAN FX.Get your market update from @ddubrovskyFX here: https://t.co/aB8qP3JsB4 https://t.co/TiKvOV1M6k
Euro Pops as the Dollar Drain Drives Deeper

Euro Pops as the Dollar Drain Drives Deeper

2017-06-27 18:52:00
James Stanley, Currency Strategist
Share:

Talking Points:

- For trading ideas, please check out our Trading Guides. And if you’re looking for something more interactive in nature, please check out our DailyFX Live webinars.

To receive James Stanley’s Analysis directly via email, please sign up here.

- In this webinar, we looked at the setups across the FX-space using price action after a rather climactic day of drivers.

- The first market we looked at was ‘DXY’ as a representation of the U.S. Dollar. We had discussed this earlier in the day in the article, Euro, Pound Test Resistance as Dollar Drain Drives Deeper. That Dollar drain had only continued after that article was published earlier in the day, and this leaves the Greenback in a precarious position. Nonetheless, we urged balance and we looked at setups on both sides of the U.S. Dollar.

- The first setup we looked at was long EUR/USD. I had issued an analyst pick yesterday for this setup and since then we’ve seen quite a bit of bullish price action materialize. With the pair running to fresh 10-month highs, traders should be cautious of chasing the move here. We looked at a support level at 1.1212 that could be interesting for ‘higher-low’ plays after this morning’s breakout, and we also looked at a tighter re-entry level around 1.1280 for a similar, albeit more aggressive purpose. Current IG Client Sentiment (as of this writing) for EUR/USD is -4.46-to-1, and this is bullish given retail sentiment’s contrarian nature.

- We then moved over to long USD/JPY for the bullish side of the Dollar. Yen weakness has been a major takeaway this morning with a robust run being seen in the parabolic, bullish movement in EUR/JPY. USD/JPY is testing the top-end of a resistance zone at 112.40, and this can open the door for support re-entries around 111.96, and/or 111.61. I had setup a long USD/JPY setup as part of a USD-hedge in the week before last, and am still holding long USD/JPY for the third target up to 113.25.

- We then looked at GBP/USD, which I am currently holding short as part of yesterday’s Analyst Pick. While EUR/USD is running up to fresh 10-month highs, GBP/USD remains below June resistance; and should the U.S. Dollar begin to reverse or should some of these longer-term resistance levels in Cable come into-play, this could be an interesting short-side setup.

- We then moved over to look at continuation setups in EUR/JPY, which could be a daunting prospect given the parabolic like move seen today. The pair broke above a bull flag pattern last week, and since the bullish side of the pair has begun to show prominently. We looked at two potential re-entry zones at 126.47 and 125.82.

- We then looked at Gold, which I am retaining a bearish stance on. We looked at potential resistance levels yesterday, and the ‘R4’ level continues to hold.

--- Written by James Stanley, Strategist 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.