Analyst Articles – Forex News 24

Posted: 27 Apr 2019 09:16 PM PDT

EURUSD Technical Highlights:

Euro may bounce a bit/consolidate before lower
Levels to watch on top and bottom-side
DXY breakout is sustainable above 9771

Check out the DailyFX Trading Guides page for intermediate-term forecasts, educational content aimed all experience levels, and more!

Euro may bounce a bit/consolidate before lower

Last week, the Euro took a spill to lows not seen in almost two years, but found a few buyers near a couple of levels of support which might keep a bid in it temporarily. A trend-line from 2015 and a minor swing low from 2017 were touched to end the week.

EURUSD may bounce around a bit, digesting its most recent set of losses, but as long as it doesn't start immediately showing real power to the upside then further losses are anticipated. Trading through the March and April lows should prove problematic. If the Euro does, then look for a trend-line from last month to keep an advance in check.

Looking lower, there is some support to consider, but given that the angle of these lines runs with the trend there looks to be a better than average chance they don't provide a significant bid. The November 2017 under-side trend-line is the biggest concern, followed by a parallel to the March trend-line.

Low volatility has kept the Euro moving lower in gradual fashion. If in the coming sessions a drop below 11000 can unfold, putting the Euro clearly below noted support, this could change with an uptick in volatility.

In the event of a drop below 11000, a gap-fill from the French election down at 10724 will be targeted. It's been on my mind for a while, and I do believe it will get filled at some point, but of course the path to doing so is still uncertain. Next week may help provide more conviction that it could come sooner rather than later.

Check out the IG Client Sentiment page to find out how changes in positioning in major markets could signal the next price move.

EURUSD Daily Chart (Levels, lines to watch)

The DXY broke out strongly last week above the 9771 level, triggering a mostly developed ascending wedge pattern. The Euro is ~57% of the weighting of this index; so goes the Euro goes the DXY for the most part. As long as 9771 isn't breached on a daily closing basis, then I will give the breakout the benefit of the doubt. A retest of the breakout may occur here shortly and offer a solid risk/reward proposition for Dollar bullish bets.

US Dollar Index (DXY) Daily Chart (Bullish above point of breakout)

Australian Dollar Forecast – Aussie Price Forecast: AUD/USD, AUD/JPY Near Critical Support

Crude Oil Forecast –Favorable Forces Remain Despite Sharp Drop

British Pound Forecast – GBPUSD Rate to Stage Larger Rebound on Hawkish BOE Forward Guidance

US Dollar Forecast – US Dollar Weekly Price Outlook: Rally at Multi-year Trend Resistance

Gold Forecast – Gold Prices Earn Biggest Week Rally in Three Months, Is this a Reversal?

Helpful Resources for Forex Traders

Whether you are a new or experienced trader, we have 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

http://platform.twitter.com/widgets.js
2019-04-28 04:00:00

Can you get luxurious from fx trading? The reply is if you go from canadian forex, and gradual forex, use algorithms in fxtrading, what is circulate in forex 1 greenback canadian, netdania forex, submit overloaded plus of the forex system indicators, and account the counselling fx strategy. We present win win all.

US Dollar May Rise Further as a Cautious Fed Spooks Markets

Posted: 27 Apr 2019 09:19 AM PDT

US DOLLAR FUNDAMENTAL FORECAST: BULLISH

Dollar drops as risk appetite begrudgingly firms on upbeat US GDP data
FOMC likely to sound cautious, extolling patience and spooking markets
April jobs report might disappoint, amplifying global slowdown worries

Check out the latest US Dollar forecast and see what is expected to drive prices through mid-year!

Financial markets were surprisingly circumspect after first-quarter US GDP data roared past expectations, putting the annualized growth rate at 3.2 percent. Economists were calling for a substantially more modest 2.3 percent ahead of the release.

This might have been expected to excite investors, especially since US economic news-flow has been broadly deteriorating relative to baseline forecasts for months. In fact, bond yields fell, and the US Dollar put in a purely anti-risk performance, dropping as stock prices begrudgingly climbed into the close.

Furthermore, shares only found enough conviction to mount coherent gains close to two hours after the GDP report. The bellwether S&P 500 pointedly stopped short of cementing an upside breakout, failing to close above the 2018 high yet again. Taken together, that is hardly an enthusiastic endorsement.

Meanwhile, the Greenback's pullback only narrowly trimmed what was otherwise a week of gains seemingly driven by jittery sentiment. What's more, a gauge of the currency's average value against its major counterparts broke from months of congestion to hit its highest level yet this year.

Timelier measures of the business cycle like PMI surveys endorsed the idea that growth perked up in the first quarter well before the GDP release, which might have depleted some market-moving potential. Worryingly, the same indicators also point to dramatic deceleration in April.

US DOLLAR MAY RISE ON CAUTIOUS FOMC, DOWNBEAT JOBS DATA

With that in mind, the spotlight turns to next week's FOMC rate decision. March marked a decisively dovish

pivot. The quarterly growth print notwithstanding, an ongoing slowdown in the global business cycle and lingering political risk by way of trade wars and Brexit are likely see the Fed extoll "patience" again.

If the degree of caution in policymakers' tone appears to clash with the GDP report, investors may feel vindicated in treating the outcome with suspicion. The skeptics may be bolstered further if April's jobs report subsequently disappoints, as leading surveys suggest it might.

The absence of a plausible rate hike outlook to be unwound in the wake of such news-flow suggests another purely risk-off US Dollar response may be in store. That would see the currency rise on haven demand as the Fed's reticence amplifies already building concerns about a downshift globally.

— Written by Ilya Spivak, Sr. Currency Strategist for DailyFX.com

To contact Ilya, use the comments section below or @IlyaSpivakon Twitter