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
Bearish
Oil - US Crude
Bearish
Wall Street
Bearish
Gold
Bearish
GBP/USD
Mixed
USD/JPY
Bearish
More View more
Real Time News
  • 🇯🇵 Consumer Confidence (OCT) Actual: 33.6 Previous: 32.7 https://www.dailyfx.com/economic-calendar#2020-10-29
  • Heads Up:🇯🇵 Consumer Confidence (OCT) due at 05:00 GMT (15min) Previous: 32.7 https://www.dailyfx.com/economic-calendar#2020-10-29
  • Fear has reared its ugly head this past session. Will a fire burn when for risk assets like the Dow even as attention is drawn forward to next week's Presidential election? I discuss my views in today's trading video: https://www.dailyfx.com/forex/video/daily_news_report/2020/10/29/Dow-and-Nasdaq-Enter-Technical-Corrections-Dollar-Plays-Safe-Haven-Ahead-of-GDP-and-FAANGs.html?ref-author=Kicklighter&QPID=917719&CHID=9 https://t.co/KYexqG2pEa
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.86%, while traders in NZD/USD are at opposite extremes with 69.17%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/yOLbxwOKhF
  • The Indian #Rupee may weaken following a breakout higher in $USDINR over the past 24 hours. Despite rising global stock market volatility, the #nifty50 has been holding its ground. Could it capitulate lower? - https://www.dailyfx.com/forex/technical/article/special_report/2020/10/29/Indian-Rupee-Nifty-50-Forecast-USDINR-Breakout-as-Volatility-Spikes.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/GPQSQMvUsn
  • Forex Update: As of 04:00, these are your best and worst performers based on the London trading schedule: 🇦🇺AUD: 0.28% 🇨🇦CAD: 0.24% 🇬🇧GBP: 0.16% 🇨🇭CHF: 0.10% 🇪🇺EUR: 0.07% 🇯🇵JPY: -0.15% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/YuqROnNqY7
  • Indices Update: As of 04:00, these are your best and worst performers based on the London trading schedule: US 500: 0.95% Wall Street: 0.95% France 40: 0.56% Germany 30: 0.46% FTSE 100: 0.27% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/kACR087bkv
  • $USD Technical Analysis: $AUDUSD, $EURUSD, $GBPUSD Key Levels to Watch - https://www.dailyfx.com/forex/technical/home/analysis/us_dollar_index/2020/10/29/USD-Technical-Analysis-AUDUSD-EURUSD-GBPUSD-Key-Levels-to-Watch.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Moss&utm_campaign=twr https://t.co/qhWkEqOHVW
  • Technical indicators are chart analysis tools that can help traders better understand and act on price movement. Learn more about the importance of technical analysis here: https://t.co/NpC1D8y4Aa https://t.co/RkYUVwtuaF
  • BoJ: Risks are tilted to downside for economic, price outlook. Outlook assumes no large-scale spread of virus -BBG
FX Price Action Setups in EUR/USD, GBP/USD, USD/CAD and AUD/USD

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

2019-05-21 19:00:00
James Stanley, Strategist
Share:

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

Do you want to see how retail traders are currently trading the US Dollar? Check out our IG Client Sentiment Indicator.

Gold Price Breaches Trend-Line, Exposes 2019 Low

Risk aversion themes have been on display of recent in Gold prices. A couple of weeks ago, I had looked at topside potential on a continuation of risk aversion, as echoed by similar themes of US equities pulling back. Gold caught a strong bid early last week and prices posed a quick run-up to resistance at 1302.76. But, that’s when the music stopped, and since then, bears have been pushing back as risk tolerance has extended. Gold prices put in a breach of a bullish trend-line that had previously helped to catch the May low. This runs around a double-bottom at 1266.10. A break-below that level exposes a deeper pocket of support around the 1252-1253 area on the chart.

Gold Price Four-Hour Chart

Gold price chart

Chart prepared by James Stanley

US Oil Builds Range Between Fibonacci Levels

Recent Support in WTI has shown around 62.85 while resistance has continued to play-in from around 63.71. This has produced a range-bound environment over the past week. A bullish break above 63.71 could soon re-open the door to topside strategies, looking for targets towards the 64.50-64.77 level on the chart.

US Oil Two-Hour Price Chart

us oil price chart

Chart prepared by James Stanley

EUR/USD Trap Potential – European Elections Coming Up

EUR/USD has been fairly quiet so far this week, all factors considered. But, that may not last for long as this Thursday brings the start of European elections and that runs alongside the release of ECB minutes for Thursday morning. Notably – EUR/USD appears as a bear trap given the current backdrop. Despite last week’s consistent run of USD-strength, EUR/USD bears have been fairly shy around tests of prior lows. This morning even brought a quick flicker of strength in the pair, but sellers showed up around the 1.1187 Fibonacci level that marks the bottom of the prior support zone. This can make for a muddy backdrop going into the later-week risk items in the pair.

For more background on European elections and how that might impact the single currency, our own Martin Essex has produced a primer for the event entitled, Euro Price Slide Set to Continue as European Elections Draw Closer.

EUR/USD Four-Hour Price Chart

eurusd four hour price chart

Chart prepared by James Stanley

GBP/USD Holding a Big Area of Long-Term Support

Brexit dynamics have made an appearance in GBP/USD, once again. And this can be a difficult theme to work with as it’s a rather pensive manner with a low degree of predictability. But – for volatility traders, this may produce a workable backdrop. At this point, GBP/USD is testing a big area of support that I’ve been following that runs from 1.2671-1.2721. This can keep the door open for reversal potential; and on the short-side of the pair, traders can look for breaks below 2671 to re-open the door for bearish strategies.

GBP/USD Daily Price Chart

gbpusd gbp/usd price chart

Chart prepared by James Stanley

USD/CAD Ranges Between Key Support and Resistance

The 1.3500 level has continued to hold the highs in USD/CAD, and support has similarly played-in from a familiar zone of recent relevance. The approach here may be more attractive on the long side, looking for the recent higher-lows that have started to price-in to, eventually, bring upon a break of the resistance zone around 1.3500. In the webinar, I showed how a box breakout strategy could be instituted in the pair, along with how continued range could be worked with (in the Q&A portion of the session).

USD/CAD Four-Hour Price Chart

usdcad price chart

Chart prepared by James Stanley

USD/JPY – Beware the Gap Trap

There is a fairly attractive area of resistance potential nearing in USD/JPY, and this runs around a prior area of support from 110.75-110.86. This zone had most recently helped to set lower-high resistance following the early-May gap-down. To date, that gap hasn’t yet been filled, and this can make for a difficult backdrop. Prices moving back into 110.75-110.86 may give the attractive appearance of short-side potential; but traders may want to wait for that gap to first fill before entertaining such scenarios.

USD/JPY Four-Hour Price Chart

usdjpy price chart

Chart prepared by James Stanley

Aussie Fills Gap, Clings to Support

I had looked into AUD/USD yesterday. The pair put in a gap-higher to open this week’s trade but, as warned yesterday, a fill of that gap coupled with a hold of last week’s low may soon open the door to bullish reversal strategies. That backdrop has since filled-in, and similar to GBP/USD above, this can open the door for topside strategies as long as that support holds and, if sellers are able to break-below, bearish strategies could come back into play to target the .6750 area on the charts.

AUD/USD Two-Hour Price Chart

audusd aud/usd price chart

Chart prepared by James Stanley

NZD/USD Clings to .6500

Similar as the above in AUD/USD with the notable exception of a better support structure around current levels.

NZD/USD Daily Price Chart

nzdusd nzd/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

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

DISCLOSURES