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.

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
EUR/USD
Bullish
Oil - US Crude
Bullish
Wall Street
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
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
Bullish
USD/JPY
Bearish
More View more
Real Time News
  • Did you know a Doji candlestick signals market indecision and the potential for a change in direction. What are the top five types of Doji candlesticks? Find out: https://t.co/td5WA4hCZC https://t.co/cQwbeZ6Feq
  • #Oil prices saw a reprieve to the recent selling pressure but remain at risk while below downtrend resistance. Here are the levels that matter on the #WTI technical chart. Get your #commodities update from @MBForex here: https://t.co/CcXsF3JCMH https://t.co/RUmS1cX52v
  • Forex liquidity makes it easy for traders to sell and buy currencies without delay, and also creates tight spreads for favorable quotes. Low costs and large scope to various markets make it the most frequently traded market in the world. Learn more here: https://t.co/5uSWKoLkd6 https://t.co/boEI8RuQdC
  • The growth-linked New Zealand Dollar may rise on the upcoming #RBNZ rate decision following rosy economic data. However, downside potential in the S&P 500 could offset $NZDUSD gains. Get your #currencies update from @ddubrovskyFX here: https://t.co/LfCe6C6G3P https://t.co/kUeBxxeaEf
  • It was a quiet week in Aussie as $AUDUSD put in its second consecutive week of indecision. But taking a more granular look highlights the potential for a reversal scenario. Get your #currencies update from @JStanleyFX here: https://t.co/PPK20nubAf https://t.co/0nfmRRFNnz
  • The S&P 500 pushed the market's comfort with a head-and-shoulders pattern through Friday's close. What should we look for in technical patterns, overlapping fundamental tides and speculative positioning for the likes of $EURUSD next week? https://www.dailyfx.com/forex/video/daily_news_report/2020/09/19/EURUSD-Pressure-Building-while-Anxious-Traders-Weigh-Did-SP-500-Break.html?ref-author=Kicklighter&QPID=917719&CHID=9 https://t.co/lgVJVwi8th
  • Sterling remains trapped by overarching fundamentals drivers and both $GBPUSD and $EURGBP are going to have to wait until the Brexit dust settles. Get your #currencies update from @nickcawley1 here: https://t.co/vF1K1cy0nd https://t.co/NSA7qiQihc
  • 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/1oygcFMFNs https://t.co/d9EmTOHyTv
  • Traders tend to overcomplicate things when they’re starting out in the forex market. This fact is unfortunate but undeniably true.Simplify your trading strategy with these four indicators here:https://t.co/A4dqGMPylo https://t.co/xqbUxwWgTZ
  • An economic calendar is a resource that allows traders to learn about important economic information scheduled to be released. Stay up to date on the most important global economic data here: https://t.co/JdvW6HNuqV https://t.co/Gi8LHCT5sB
Pre-NFP Price Action Setups Across the U.S. Dollar

Pre-NFP Price Action Setups Across the U.S. Dollar

2017-12-07 20:03:00
James Stanley, Strategist
Share:

The next few trading days bring some interesting USD drivers to the fray, with tomorrow’s release of November Non-Farm Payrolls and next week’s widely-expected interest rate hike out of the Federal Reserve. In this webinar, we look at price action setups across the U.S. Dollar ahead of this pick-up in activity.

Talking Points:

- 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.

- In this webinar, we looked at price action setups across the U.S. Dollar ahead of tomorrow’s release of November Non-Farm Payrolls and next week’s widely-expected interest rate hike out of the Federal Reserve. The U.S. Dollar has started to show a bit of strength as we near these drivers, and this opens up a number of interesting possibilities in major currency pairs.

- We first looked at longer-term trajectory of USD. 2017 has been, without a doubt, a nasty year for Dollar-bulls. But – this may just be a corrective move of the larger, longer-term bullish trend that started in 2014 and peaked on the second trading day of this year (shown below). The sell-off in the first nine months of the year was a 50% retracement of that move, so there could be a compelling case for USD-strength next year. This is relevant because if others are looking at the matter from a similar vantage point, it could help to impact near-term price action, and this is something deserving of attention over the next few trading days as the Fed’s plans for rate hikes in 2018 comes closer into focus.

U.S. Dollar via ‘DXY’ Weekly: 2017 Sell-Off a Correction of Bigger Picture – 38.2% Retracement of 2008-2017 Trend, 50% retracement of 2014-2017 Major Move

Pre-NFP Price Action Setups Across the U.S. Dollar

Chart prepared by James Stanley

- The first short-USD candidate that we looked at was GBP/USD. Cable is in the midst of a fairly strong day, and this comes after what was a fairly aggressive sell-off down to a key support level. We looked into that setup yesterday while looking at a support point around 1.3320, and after a quick check this morning, price action has run back up towards 1.3500. This can be tough as we go into NFP tomorrow, and the most attractive strategy may be to look for a quick blip of USD-strength on tomorrow’s print, which could allow for a support hit in GBP/USD.

- We then moved over to GBP/JPY, which could allow traders to look for a continuation of GBP-strength while removing the risk around a shaky U.S. Dollar. We looked into this setup yesterday in a different article, as both a double-bottom and double-top formation have shown in GBP/JPY price action. In yesterday’s article, we looked at a mechanism to make a play inside of this recent range by playing support off of 150.00. GBP/JPY has been peculiarly quiet so far this year; and this may be leading into a rather active 2018. We looked at playing bullish continuation after a break through resistance around 152.85.

- We then moved over to AUD/USD, which remains as one of the more attractive ways to play for USD-strength. Even as USD-strength has reversed since early-November, AUD/USD has continued to move-lower, highlighting how the Australian Dollar has been even weaker than its American counter-part. We looked at how we could use an NFP reaction tomorrow to build-in bearish exposure in the pair.

- We then looked at EUR/USD, which appears to be continuing to try to dig-out support above that key zone of 1.1685-1.1736. This zone has been an item of interest for EUR/USD price action going back to early-August, and after the recent re-break back-above this area, prices have started to trickle-lower. We looked into the technical setup earlier this morning, and at the time of the webinar, the context was fairly similar. I’m looking for support above the prior swing-low of 1.1712 to open the door for fresh long exposure in the pair.

- USD/CAD saw some fireworks yesterday around the Bank of Canada rate decision. We looked into a support zone just ahead of that meeting yesterday, and price have burst higher in the aftermath. At this point, we’ve almost filled in the bullish side of the range in a mere two trading days, and a re-test around 1.2900 around NFP tomorrow can open the door for potential reversal setups.

--- 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