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
More View more
Real Time News
  • 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/zEEUHZBx7g https://t.co/jZHcyAZ5SU
  • Further your forex knowledge and gain insights from our expert analysts on EUR with our free guide, available today: https://t.co/XtydfV5wS6 https://t.co/Iw9haaHAnn
  • The Federal Reserve System (the Fed) was founded in 1913 by the United States Congress. The Fed’s actions and policies have a major impact on currency value, affecting many trades involving the US Dollar. Learn more about the Fed here: https://t.co/ADSC4sr63f https://t.co/raO3gCGqQ6
  • Key levels in forex tend to draw attention to traders in the market. These are psychological prices which tie into the human psyche and way of thinking. Learn about psychological levels here: https://t.co/8A1QhwMVKo https://t.co/rWVlBs6H3c
  • The update to the US Consumer Price Index (CPI) is likely to sway the US Dollar during the Federal Reserve’s blackout period as the central bank braces for a transitory rise in inflation. Get your weekly $USD forecast from @DavidJSong here: https://t.co/JTuP7CLlyi https://t.co/tOvqn3Gdpc
  • Becoming a forex trader means living and breathing the excitement, risk and reward of trading in the biggest and most liquid market in the world. Do you have what it takes? Read here to discover the qualities and processes it takes to build consistency: https://t.co/EfWEACQ6Cz https://t.co/s5dn4ZKnku
  • Becoming a forex trader means living and breathing the excitement, risk and reward of trading in the biggest and most liquid market in the world. Do you have what it takes? Read here to discover the qualities and processes it takes to build consistency: https://t.co/EfWEACyvdZ https://t.co/6VjW5FEiQW
  • Global stocks bounce back from recent pullback as key resistance levels lie ahead. Get your weekly equities forecast from @HathornSabin here: https://t.co/wXSWo1JygD https://t.co/vWVaSEQTXT
  • Do you know how to properly Identify a double top formation? Double tops can enhance technical analysis when trading both forex or stocks, making the pattern highly versatile in nature. Learn more about the double top formation here: https://t.co/t9FlspUVZz https://t.co/9kfBu04auM
  • Dealing with the fear of missing out – or FOMO – is a highly valuable skill for traders. Not only can FOMO have a negative emotional impact, it can cloud judgment and overshadow logic. Learn how you can control FOMO in your trading here: https://t.co/lgDf5ddzFV https://t.co/8GJ6OQYgnW
Price Action Setups post-ECB (Sept. 7, 2017)

Price Action Setups post-ECB (Sept. 7, 2017)

James Stanley, Senior Strategist

- If you’re looking for trade ideas, please check out our Trading Guides. And if you’re looking for shorter-term trade ideas, please check out our IG Client Sentiment.

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

- This is one of the many DailyFX webinars that we host each week, most of which are completely free to all traders. If you’d like to attend this event in the future, or if you’d like to find another of our webinars that may fit your trading style even better, please check out our DailyFX Webinar calendar to find the best session for you.

- In this webinar, we used price action to look at macro trends after today’s European Central Bank rate decision.

- At this morning’s ECB rate decision, Mario Draghi side-stepped the topic of QE taper, and while the bank did raise growth forecasts for 2017, they cut inflation forecasts for next year which is, in essence, a dovish move. Nonetheless, Euro strength continued to show, as we’ve seen for a large portion of 2017, as markets continue to try front-running what’s starting to feel like an inevitable exit from the bank’s massive stimulus program. The fact that this morning was unable to take out the prior high at 1.2070 opens the door for short-term, short-side exposure; but the general trend is higher here, and revisits to support are attractive for continuation of the longer-term bullish theme.

- GBP/USD has been resilient of late, and this can show quite well in the EUR/GBP spot rate. GBP/USD is testing a key Fibonacci level at 1.3117, which is the 38.2% retracement of the ‘Brexit move’ in the pair. A topside break above this level opens the door for bullish continuation. Next week brings the Bank of England, and this will likely be the next major driver for the British Pound.

- EUR/GBP looks a bit tricky at the moment. The daily chart is showing a not yet completed morning star formation, but applying the trend-channel that’s defined the pair’s bullish run since mid-April shows a bit of resistance at the mid-line. This is where the trap element may come into play, as that morning star isn’t quite as bullish considering how overbought the pair remains to be, combined with the touch of resistance off this morning’s highs. The level of .9000 is interesting for bullish exposure, if it comes into play, as we have yet to test this level for support after jumping-above last month.

- USD/CAD put in some fireworks yesterday after the Bank of Canada made the surprise move to hike rates. This broke the pair below a trend-line that’s been in play since 2012, and we haven’t seen much support show-up since then. With the U.S. Dollar remaining extremely weak, this could be a tough prospect of continuation. We looked at using the under-side of that trend-line for resistance plays for down-side continuation approaches, but this is a couple hundred pips away. During the Q&A we looked at a few tighter levels that could be used for more near-term bearish approaches.

- U.S. Dollar: DXY remains abysmally weak, coming off of another fresh 2.5 year low this morning during the ECB press conference. The only notable element of this weakness is how sellers appeared to dry up as we perched down to a new low, which is just another factor denoting how oversold the U.S. Dollar has become. If some bullish factors can show up, we may actually see some higher prices, but given that a major Federal Reserve decision is looming large on the calendar for two weeks away, we may have to wait for a little while for such an occurrence. Short-side continuation in USD should be approached tactically, focusing on currencies with strength, such as CAD or Euro, to take on that short-USD exposure.

--- 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