EUR/USD Rate Ripping to Two-Year Highs Leaves Euro during Resistance

EUR/USD PRICE OUTLOOK: EURO EXTENDING TO TWO-YEAR HIGH AS BULLS PRESS TECHNICAL RESISTANCE

  • EUR/USD rate eying uninformed two-year highs as a Euro rips into month-end
  • Euro bulls omit rising new pathogen cases and tightening lockdown measures
  • EUR/USD cost movement could be during risk of a intensity double tip draft pattern

The Euro is trade behind during two-year highs opposite a US Dollar counterpart as EUR/USD cost movement spikes into a 1.19-handle. Euro strengthening opposite a US Dollar has prevailed as a pivotal thesis given EUR/USD started rocketing off a 1.08-price turn this past May, though can a bullish trend pull leading into a month ahead?

EUR/USD PRICE CHART: 4-HOUR TIME FRAME (29 JULY TO 31 AUGUST 2020)

EURUSD EUR USD Price Chart Euro to US Dollar

August was violent for EUR/USD, that is a world’s many glass and heavily traded major banking pair. In fact, EUR/USD rates fluctuated within a 270-pip trade operation this past month. The Euro mislaid ceiling movement as a US Dollar attempted to base, though in a arise of a Jackson Hole Symposium where a Fed announced normal acceleration targeting, mark EUR/USD seems to have resumed a ascent. Month-end rebalancing competence be weighing definitely on EUR/USD prices as well.

Forex for Beginners
Forex for Beginners

EUR/USD bulls but face a pivotal barrier of technical resistance underpinned by a month-to-date pitch high. So far, EUR/USD cost movement looks like it is reacting negatively to this level, that places intensity for a double tip pattern on a radar.

This bearish technical unfolding could be lighted by a elemental matter like risk of a second call threatening a EU mercantile recovery. Not to mention, as markets in. into a tumble deteriorate and out of a summer doldrums, there is also a probability for a resurgence of currency volatility. That said, upcoming eventuality risk and high-impact information releases confronting a US Dollar after this week might strongarm a instruction of EUR/USD over a near-term.

— Written by Rich Dvorak, Analyst for DailyFX.com

Connect with @RichDvorakFX on Twitter for real-time marketplace insight

Canadian Dollar Forecast: USD/CAD Slips to 7-Month Low

USD/CAD Price Outlook:

Canadian Dollar Forecast: USD/CAD Slips to 7-Month Low

The Canadian Dollar gained opposite a southern reflection to start a week, promulgation USD/CAD to a lowest indicate given early January. As a result, a span has retraced a entirety of a covid-related blast and now looks to spin disastrous for a year. Coupled with uninformed lows and a new change in a Fed’s policy, USD/CAD looks exposed to serve debility during this stage.

USD/CAD Price Chart: Daily Time Frame (December 2019 – Aug 2020)

usdcad cost chart

With that in mind, support underneath a stream trade cost is comparatively meagre that competence concede for an prolongation lower. While a turn 1.3000 turn competence yield a jot of support, we would disagree a 2019 low around 1.2953 competence offer some-more influence. Either way, months of waste prominence determined weakness that could overcome both areas of intensity support.

Further still, IG Client Sentiment Data reveals sell traders sojourn net-long USD/CAD notwithstanding new cost action. Since we typically take a contrarian perspective to IGCS, a information competence also advise some-more debility ahead.

USD/CAD Price Chart: 4 – Hour Time Frame (June 2020 – Aug 2020)

usd/cad cost draft

That said, probable lift backs competence concede for appealing entrance opportunities. With insurgency beyond around a 1.32 mark, a brief retracement competence raise a risk-reward form of such a trade. Still, debility is not guaranteed and a convincing mangle out above a forward trendline from early Jul could criticise a bearish outlook. In a meantime, follow @PeterHanksFX on Twitter for updates and analysis.

Traits of Successful Traders
Traits of Successful Traders

–Written by Peter Hanks, Strategist for DailyFX.com

Contact and follow Peter on Twitter @PeterHanksFX

DailyFX Education Summit: Trade Your Market

DAILYFX SUMMER EDUCATION SUMMIT

TRADE YOUR MARKET

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2pm-2:45pm Eastern – Manal Hossain, IG

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Trading a World with FX

12pm-12:45pm Eastern – James Stanley, DailyFX

FX is a largest marketplace in a universe but, in a US, frequency gets a concentration or courtesy of other markets like bonds or commodities. But this really critical item category is indeed associated to many of those markets and can assistance to facilitate a truly ‘macro’ trade approach. In this session, you’ll see a connectors around FX markets while also training a systematic proceed to tackle a markets.

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Trading involves poignant risk of detriment and is not suitable for all investors. Increasing precedence increases risk. CFDs are not accessible for US residents. Spot Gold and Silver contracts are not theme to law underneath a U.S. Commodity Exchange Act. Before determining to trade forex, we should delicately cruise your financial objectives, turn of knowledge and risk appetite. Any opinions, news, research, analysis, prices or other information contained does not consecrate investment advice.

Nadex and DailyFX are dependent subsidiaries of IG Group PLC. Trading on Nadex involves risk and might not be suitable for all. Members risk losing their cost to enter any transaction, including fees. You should delicately cruise either trade on Nadex is suitable for we in light of your investment knowledge and financial resources. Any trade decisions we make are only your shortcoming and during your possess risk. Past opening is not indispensably demonstrative of destiny results. None of a element enclosed herein is to be construed as a solicitation, recommendation or offer to buy or sell any financial instrument on Nadex or elsewhere. Nadex is theme to U.S. regulatory slip by a CFTC.

USD/MXN Forecast: Dollar-Peso Probes Key Level as Oil Swings

USD/MXN PRICE OUTLOOK: DOLLAR-PESO SEARCHES FOR SUPPORT AS CRUDE OIL PULLS BACK

  • USD/MXN cost movement is gyrating around a 200-day relocating average
  • US Dollar searches desperately for support as commodity currencies strengthen
  • Mexican Peso could come underneath vigour if there is a resurgence of sensitivity

USD/MXN prices have edged usually reduce over a final integrate months. This comes as a US Dollar surrenders gains notched opposite a Mexican Peso – and other commodity currencies like a Canadian Dollar, Norwegian Krone, or Australian Dollar – progressing this year during a conflict of a coronavirus pandemic. Yet, notwithstanding weakening over 10% given March, a Dollar-Peso still trades aloft by some-more than 15% when totalled from a Jan opening level.

Forex for Beginners
Forex for Beginners

USD/MXN PRICE CHART: DAILY TIME FRAME (19 MAR TO 31 AUG 2020)

USDMXN Price Chart USD MXN US Dollar to Mexican Peso Forecast

Net of these moves, mark USD/MXN cost movement now gravitates somewhat subsequent a 200-day moving average, that resides nearby a 21.900-mark. That said, after breaching this pivotal technical turn late final week, a US Dollar appears exposed to another leg reduce opposite a Mexican Peso. If USD/MXN bulls can retrieve this barrier, however, it could inspire them to aim a 50-day relocating normal or 23.6% Fibonacci retracement turn summarized on a draft above. On a other hand, if a bearish medium-term trend prevails, a 08 Jun swing low could offer as a intensity downside design for USD/MXN bears.

Traits of Successful Traders
Traits of Successful Traders

USD/MXN PRICE CHART CRUDE OIL OVERLAID: DAILY TIME FRAME (27 MAY TO 31 AUG 2020)

USDMXN Price Chart US Dollar to Mexican Peso Correlation with Crude Oil

Perhaps a instruction of crude oil could prove where mark USD/MXN cost movement heads next. The Dollar-Peso tends to binds a clever different attribute with wanton oil cost action, that is indicated by a disastrous association fellow generally maintained. The Mexican Peso is closely tied to fluctuations in oil prices saying that Mexico is one of a world’s largest producers and exporters of wanton oil. Also, a attribute between wanton oil and USD/MXN is identical to a attribute between crude oil and USD/CAD.

Understanding a Core Fundamentals of Oil Trading
Understanding a Core Fundamentals of Oil Trading

Correspondingly, there is intensity for USD/MXN prices to continue flapping reduce while a tellurian economy sustains a liberation and wanton oil advances further. This brings a recover of PMIs and jobs data via a week into concentration for a health check on underlying mercantile conditions. On that note, it is value mentioning how a resurgence of marketplace sensitivity and risk hatred expected stands to send USD/MXN cost movement gnawing behind higher.

Learn More: Register to Attend a DailyFX Education Summit Online for Free!

— Written by Rich Dvorak, Analyst for DailyFX.com

Connect with @RichDvorakFX on Twitter for real-time marketplace insight

Dow Jones Forecast: Index Slips Ahead of Historically Bearish Month

Dow Jones Price Outlook:

Dow Jones Forecast: Index Slips Ahead of Historically Bearish Month

The Dow Jones finished Monday trade usually -0.78% reduce than it non-stop as a VIX climbed modestly and a Nasdaq 100 edged somewhat aloft on a behind of strength from bonds like Tesla. While minimal, a waste chipped divided during a monthly opening of a Dow Jones that was on gait for a conspicuous benefit of some-more than 8%. Still, a 7.57% benefit for a month of Aug – typically one of a quieter trade months – is an considerable attainment given a broader marketplace backdrop.

September Typically Sees an Increase in Volatility

SP 500 monthly lapse cost draft

Source: John Kicklighter, Bloomberg

That said, August’s final trade day could be an early denote of a incomparable change in a marketplace as it gears adult to transition from some of a calmest months to some of a many rocky. To that end, Sep is not usually volatile, though is also a weakest month for US equities from a lapse viewpoint over a final 40 years according to history.

Equities Forecast
Equities Forecast

While past opening is not in any approach demonstrative of destiny results, seasonality positively plays a purpose in marketplace activity and a appearing US Presidential choosing could assistance intensify some of a themes determined in years past.

Volatility Expected to Rise in a Weeks Ahead

vix futures tenure structure chart

Suffice it to say, a Dow Jones, SP 500 and Nasdaq 100 competence have their work cut out for them in a entrance weeks. Nevertheless, a Dow Jones has shown small denote it will unexpected retreat reduce in earnest, so some-more coherence from bears competence be compulsory to shake a solve of a bullish majority.

Dow Jones Price Chart: 4 – Hour Time Frame (May 2020 – Aug 2020)

dow jones cost draft

Such self-assurance competence be determined by aggressive several areas of support that reside underneath a stream trade price. Psychological levels, before highs and descending trendlines are usually some of a probable areas of irresolution underneath and bears will have to exam any before a incomparable decrease can be made. In a meantime, follow @PeterHanksFX on Twitter for updates and analysis.

–Written by Peter Hanks, Strategist for DailyFX.com

Contact and follow Peter on Twitter @PeterHanksFX