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
  • Heads Up:🇳🇱 Consumer Confidence (SEP) due at 04:30 GMT (15min) Previous: -6 https://www.dailyfx.com/economic-calendar#2021-09-22
  • PBoC liquidity injection + reports that Evergrande will make its next onshore bond payment ($35.88-million on 23 Sept) is bolstering risk appetite here. Yet, there is still no word on the $83.53-million offshore bond payment also due Thursday. Over to you now, Jpow & Co. https://t.co/3an0K2d5T1
  • 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/ewdevfzq9I
  • Bank of Japan: - Outlook highly uncertain amid Covid - Asset purchase outline unchanged - Cuts assessment of production - exports, production impacted by supply side constraints - BBG
  • Heads Up:🇯🇵 BoJ Interest Rate Decision due at 03:00 GMT (15min) Previous: -0.1% https://www.dailyfx.com/economic-calendar#2021-09-22
  • What is your forex trading style? Take the quiz and find out: https://t.co/YY3ePT7Yu8 https://t.co/Gl4naStqw1
  • Hello there traders! @FxWestwater and I collaborated to bring you a breaking news story on China's #Evergrande coupon payment $AUDUSD $NZDUSD #AUD #NZD Check out the full story here - https://www.dailyfx.com/forex/market_alert/2021/09/22/AUDUSD-NZDUSD-Soar-on-Evergrande-Debt-Deal-PBOC-Liquidity-Injections.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/nZeZUyctsX
  • Commodities Update Post #Evergrande Payment News: #Gold trading cautiously higher as #USD falls (Treasury yields rising offsetting price action slightly) Growth-linked #CrudeOil prices pushing higher as Chinese slowdown woes slightly cool https://t.co/kq1l3v5O4I https://t.co/tIuUcE0b4N
  • The Spinning Top candlestick pattern forms part of the vast Japanese candlestick repertoire with its own distinct features. Gain a better understanding of the spinning top candlestick here: https://t.co/DWm7cC4v7H https://t.co/hJOIE51SQ8
  • Evergrande Sept 23 Yuan coupon payment negotiated with holders - BBG
Charts for Next Week: USD (DXY), EURUSD, Gold, Crude Oil Price & More

Charts for Next Week: USD (DXY), EURUSD, Gold, Crude Oil Price & More

Paul Robinson, Strategist

The US Dollar Index (DXY) posted a reversal bar on a failed attempt to break out, more weakness expected in days ahead; euro to rebound a bit. Gold could bounce a bit, but look for trend to remain down, same with oil (watch important July slope).

Technical Highlights:

  • USD index (DXY) reversal-bar has short-term pullback in motion
  • EUR/USD to rebound more off support
  • Gold may bounce a bit, but then weaken some more
  • Crude oil still looks bearish, watch July slope

For longer-term trading ideas, forecasts, and a library of educational content, check out the DailyFX Trading Guides.

USD index (DXY) reversal-bar has short-term pullback in motion

As we noted in Wednesday’s session, the US Dollar Index (DXY) looked poised to pull back despite having slightly breached the November high. Yesterday’s reversal on a failed attempt to stay above 95.15 has focus shifted lower towards the trend-line running higher from the April trough. Additionally, around the trend-line is an important inflection point from last year around 94.10 which may come into play as support. For now, more weakness expected.

US Dollar Index Daily Chart (More weakness expected)

US Dollar Index (DXY) daily chart

EUR/USD to rebound more off support

After briefly breaching the January 2017 trend-line, touching off on long-term support, the euro reversed course yesterday to put momentum back in favor of the top-side. It, like the DXY which is it is a large constituent of, has a trend-line running down from April which may cap an advance. More upside looks to be in store, but for now only corrective in nature.

See the IG Client Sentiment page for how sentiment changes can help you better gauge market direction.

EUR/USD Daily Chart (More rebound off support)

EUR/USD daily chart, more rebound off support looks likely

Gold may bounce a bit, but then weaken some more

Gold currently has no visible levels of support to lean on, but given its extended state and vulnerability of the dollar, we may see a recovery try to mount for at least part of next week. It’s at risk of failure though as both downward momentum and lack of meaningful support are in favor of short-sellers.

Looking lower, the April lower parallel may provide support if it is met, but at the angle which gold is operating on, the December 2015 trend-line and December low are likely to come into play as having potential for a big floor, if one is to develop.

In FX land, the GBP/AUD set-up discussed the other day is still on the table…

Gold Daily Chart (Bounce, then down…)

Gold daily chart, bounce then down...

Crude oil still looks bearish, watch July slope

After taking a three-month hiatus as support, the July slope recently came back into play as support and has so far kept oil from declining further. It’s a tough spot for crude at the moment, as it has support at its feet but also resistance just ahead. It appears crude is merely undergoing a digestion of the move off the highs, but until the July slope can break there is still a chance for a stronger bid to come in.

The anticipation on this end, though, is the bounce won’t sustain above 67 and we see a meaningful break of the July slope develop soon. If this is case, the June ’17 trend-line and 200-day (in confluence) are likely to come under pressure.

Crude Oil Daily Chart (July slope = Very Important)

Crude oil daily chart, july slope is important

Resources for Forex & CFD Traders

Whether you are a new or an experienced trader, DailyFX has several resources available to help you; indicator for tracking trader sentiment, quarterly trading forecasts, analytical and educational webinars held daily, trading guides to help you improve trading performance, and one specifically for those who are new to forex.

---Written by Paul Robinson, Market Analyst

You can follow Paul on Twitter at @PaulRobinsonFX

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

DISCLOSURES