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
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
GBP/USD
Mixed
USD/JPY
Bullish
Gold
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
Oil - US Crude
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
Bitcoin
Bearish
More View more
Notice

DailyFX PLUS Content Now Available Freely to all DailyFX Users

Real Time News
  • How often do you experience #FOMOintrading? (Be honest) Not sure if you have #FOMO? Find out here with @PaulRobinsonFX : https://t.co/ymglOV8vvC
  • US 30-Year Treasury Yield is down this morning to 2.35%
  • Commodities Update: As of 14:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 9.82% Silver: 2.20% Gold: 0.67% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/szFjFVTfIF
  • 🇺🇸 USD NAHB Housing Market Index (SEP), Actual: N/A Expected: 66 Previous: 66 https://www.dailyfx.com/economic-calendar#2019-09-17
  • US Dollar Price Outlook: EUR/USD, GBP/USD, USD/CAD, USD/CHF https://www.dailyfx.com/forex/fundamental/daily_briefing/session_briefing/daily_fundamentals/2019/09/16/us-dollar-price-outlook-eur-usd-gbp-usd-usd-cad-usd-chf-js52-usd-chart.html https://t.co/dM4YKDP9qd
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.95%, while traders in France 40 are at opposite extremes with 81.39%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/SlJfOQwCAI
  • $ES_F aiming to close the gap? https://t.co/FLkoN4uukV
  • Commodities Update: As of 13:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 9.24% Silver: 2.02% Gold: 0.70% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/nfExwfKu63
  • $CAD: Loonie loving higher #oil prices. Canadian Dollar strengthening broadly today, as the economy is a major net exporter of crude. Gains most notable versus the #Euro with the Eurozone being a large net oil importer. https://t.co/7Un1GNkZDw
  • $AUD Australian Dollar edges lower. Souring market sentiment typical bodes ill for the Aussie, and today’s move in response to weak China industrial production data and the #SaudiOilStrike seems to be no exception. Also have #RBA minutes event risk on deck - due Monday 20:30 GMT. https://t.co/Pw5iz3tt8w
FX Price Action Setups in EUR/USD, USD/CAD, NZD/USD and AUD/USD

FX Price Action Setups in EUR/USD, USD/CAD, NZD/USD and AUD/USD

2018-11-29 20:16:00
James Stanley, Currency Strategist
Share:

FX Price Action Setups in EUR/USD, USD/CAD, NZD/USD and AUD/USD

The US Dollar is bouncing from another test of the trend-line that originated in September, and this comes on the heels of the FOMC minutes release from the November rate decision. Those minutes were released after the conclusion of this webinar, but given that this was on the calendar it was a factor taken into account when looking at USD and related markets.

The US Dollar pulled back from resistance yesterday in response to comments from FOMC Chair, Jerome Powell. The big item of interest was Chair Powell’s take on the Fed’s proximity to the neutral rate. In early October (October 3rd to be exact), he had said that the bank was ‘a long way’ from this level. But –when he spoke yesterday, he said the bank was ‘just under’ this rate. While this is a very subjective interpretation, there is a noticeable difference, and the apparent shift is a more dovish take at the world’s largest Central Bank in response to rising risks in the global backdrop. Meanwhile, items around the Italian budget, Brexit and Trade Wars remain in the headlines, and this weekend brings a G20 meeting that should see President Donald Trump speak with Chinese President, Xi Jinping. In this webinar, I looked at price action setups around the US Dollar and finished by looking at Gold, Oil and US equity markets.

Forex Talking Points:

- If you’re looking to improve your trading approach, our Traits of Successful Traders research could help. This is based on research derived from actual results from real traders, and this is available to any trader completely free-of-charge.

- If you’re looking for a primer on the FX market, we can help. To get a ground-up explanation behind the Forex market, please click here to access our New to FX Trading Guide.

If you’d like to sign up for our webinars, we host an event on Tuesday and Thursday, each of which can be accessed from the below links:

Tuesday: Tuesday, 1PM ET

Thursday: Thursday 1PM ET

US Dollar Drops to Trend-Line Resistance After Powell Comments

Yesterday saw a quick move develop in both USD-pairs and US equities, and this came-in with a speech from FOMC Chair Jerome Powell at the Economic Club of New York. The difference was subtle but it was there, as Mr. Powell displayed a more sensitive tonality towards the bank’s proximity to the neutral rate, which is the interest rate that would be neither stimulative nor restrictive. On October 3rd, Powell said the neutral rate was ‘a long way’ off. In yesterday’s speech, he said the bank was ‘just under’ this level.

Does this mean the pace of rate hikes will slow? It’s still too early to say, but December looks like a fairly certain rate move: The big question is what happens in 2019, and this may be difficult for the Fed to manage expectations around as there are a series of risks to be encountered before we get into next year.

In the US Dollar, the currency remains bullish as yesterday’s sell-off merely pushed the USD down to trend-line support. This is the same trend-line that had come into play last week and the week before that. The trend-line started around the FOMC’s September rate hike, and connects to the October swing-low.

US Dollar Four-Hour Price Chart: Testing Trend-Line, Channel Support

us dollar usd four hour price chart

EUR/USD Holds Resistance at 1.1400 After Recovery Bounce

Yesterday’s rush of USD-weakness provided a reprieve for EUR/USD bulls as the pair finally pushed back above the 1.1300 level. The recovery wasn’t entirely positive, however, at least at this point, as prices remain underneath the 1.1400 handle. If this market was going to bring legitimate bullish reversal possibilities, one might expect a greater show of strength over the past 24 hours. That simply hasn’t happened, and this can keep the door open for short-side approaches. Of interest would be another lower-high within the resistance zone that I’ve been following that runs from 1.1448-1.1500. This area has already produced two resistance reactions this month, and another lower-high, inside of last week’s high of 1.1470, can make short-side setups look attractive again.

EUR/USD Two-Hour Price Chart

eurusd eur/usd two hour price chart

GBP/USD Continues with Higher-Lows After BoE’s Brexit Warnings

Yesterday brought an interesting show around the British Pound. Just before Mr. Powell began to speak in New York, Mr. Carney took the stage in London, warning of some pretty nasty items should a No-Deal Brexit develop. The BoE remarked that a worst case scenario could see unemployment as high as 7.5%, with home prices falling by as much as 30% to go along with a move in GBP that could see as much as 25% of its value taken out.

Big numbers, to be sure, and in response GBP/USD moved back down for another trend-line test. This held until Powell’s speech, at which case a rally began to show.

As I had warned in the technical piece on GBP/USD yesterday, this move was too new to chase, and a morning later prices have reverted right back down towards support. For bullish plays, matters can look a lot more attractive upon a break of last week’s resistance at 1.2896-1.2928. On the short-side, prices may need to break the yearly low at the 23.6% Fibonacci retracement of the Brexit move before that door can re-open again.

GBP/USD Weekly Price Chart

gbpusd gbp/usd weekly price chart

USD/CAD Pulls Back From Fibonacci Resistance, Tests Higher-Low Support

USD/CAD has started to pullback from the two month bullish trend after running into a Fibonacci level that’s helped to set the yearly-high. This level was looked at in yesterday’s morning article, and the support zone that I had drawn in on the pair on Tuesday’s webinar is currently helping to hold the lows. This keeps the pair as one of the more attractive long-USD candidates, as a bit of CAD weakness has been helping long-USD strategies in the pair.

USD/CAD Eight-Hour Price Chart

usdcad usd/cad eight hour price chart

NZD/USD Bullish Break from Falling Wedge

On the short-USD side of the ledger, NZD/USD has been attractive since late-October as the pair began to build in a base of support. From the November open, the pair has put in a strong topside move that’s thrust prices up to fresh five-month-highs, and we’re currently seeing some resistance set-in from a confluent batch of Fibonacci resistance that helped to previously set the November swing-high. This can help to keep the door open for topside continuation strategies, and the Fibonacci level that helped to set a top earlier this month, around RBNZ at .6820, can be re-utilized for higher-low support potential.

NZD/USD Eight-Hour Price Chart

nzdusd nzd/usd eight hour price chart

AUD/USD Bulls Get Shy at .7350

The support zone in AUD/USD continues to hold, but after yesterday’s topside ramp another issue has cropped up, and that’s a reticence from buyers around the prior support level of .7350. This can be a difficult area for bullish approaches until bulls prove that they can take this level out.

AUD/USD Daily Price Chart

audusd aud/usd daily price chart

Chart prepared by James Stanley

To read more:

Are you looking for longer-term analysis on the U.S. Dollar? Our DailyFX Forecasts for Q4 have a section for each major currency, and we also offer a plethora of resources on USD-pairs such as EUR/USD, GBP/USD, USD/JPY, AUD/USD. Traders can also stay up with near-term positioning via our IG Client Sentiment Indicator.

Forex Trading Resources

DailyFX offers an abundance of tools, indicators and resources to help traders. For those looking for trading ideas, our IG Client Sentiment shows the positioning of retail traders with actual live trades and positions. Our trading guides bring our DailyFX Quarterly Forecasts and our Top Trading Opportunities; and our real-time news feed has intra-day interactions from the DailyFX team. And if you’re looking for real-time analysis, our DailyFX Webinars offer numerous sessions each week in which you can see how and why we’re looking at what we’re looking at.

If you’re looking for educational information, our New to FX guide is there to help new(er) traders while our Traits of Successful Traders research is built to help sharpen the skill set by focusing on risk and trade management.

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

Contact and follow James on Twitter: @JStanleyFX

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

DISCLOSURES

News & Analysis at your fingertips.