EUR/USD Technical Analysis: Euro Decline Expected to Continue...

EUR/USD Technical Strategy: NET SHORT AT 1.2276 Euro selloff pauses to digest after prices drop to 5-month low Shorter-term and structural down trends remain firmly intact Looking for opportunities to add to short EUR/USD exposure See our quarterly Euro trading guide to learn what will drive prices through mid-year! The Euro selloff paused for digestion after prices slid to the lowest level in five months but the down trend started in mid-April remains intact. The move appears to represent the first step in the resumption of a decade-long Euro decline against the US Dollar. From here, a daily close below 1.1713 opens the door for a challenge of the 1.1467-1.1577 area, formerly a year-long range top now recast as support. Alternatively, a breach above falling trend line resistance at 1.1823 pave the way for a retest of the 1.1930-56 zone. The short EUR/USD trade initiated at 1.2407 remains in play, with the cost basis now at 1.2276 after adding to exposure last week.Article source:...

Japanese Yen Technical Analysis: USD/JPY Holds Above Key Support...

JAPANESE YEN TECHNICAL ANALYSIS TALKING POINTS: USD/JPY has faltered, but it remains above many key near-term supports With key fundamental data in the offing, now might not be the best time to step in GBP/JPY’s outlook seems a little more downbeat Find out what retail foreign exchange investors make of the Japanese Yen’s chances right now at the DailyFX Sentiment Page The Japanese Yen is staging a very modest fightback against the US Dollar after weeks of unrelenting bullishness towards the greenback. USD/JPY seems tentatively to have made some kind of top at last Monday’s intraday high. That came in at 111.39. The US Dollar has been declining since, part of a broad based retracement which has seen it lower against the New Zealand and Australian Dollars too, even if the Euro remains under a bit of pressure thanks to political worries in Italy. Still, it may not make sense to bet on a comprehensive turnaround in US Dollar sentiment just yet. USD/JPY’s retracement has been quite modest and for the moment at least seems limited to a support zone derived from the previous significantArticle source:...

FTSE Chart Analysis – Decline from New High May Be Just Getting Started...

FTSE Technical Highlights: FTSE catapulted to new record highs, but don’t get too excited Top-side trend-line to keep a lid on market at the least A big-picture scenario could unfold in the weeks/months ahead Check out the DailyFX Quarterly Forecasts to find out what is driving the FTSE and GBP. FTSE catapulted to new record highs, but don’t get too excited Yesterday, the FTSE traded to a new record close, and in the process, it hit a top-side trend-line extending higher since June. Top-side trend-lines, even at record levels, have been known to put a cap on advances, sometimes only briefly, and at other times these resistance lines have proven to be rather formidable. For now, we’re looking for a pullback (which is already beginning today with risk sentiment wilting a bit). The first level of support arrives just under 7800, where the prior record high is situated, along with the very steep trend-line off the March low. It would be a rather shallow pullback, but if the footsie is to continue its impressive run the market might quickly find buyers to keep the index propped up for a periodArticle source:...

GBPUSD: Support Holds at 1.331 Despite Bearish Bias...

Cable Traders Dump Short Positions GBPUSD: Retail trader data shows 72.8% of traders are net-long with the ratio of traders long to short at 2.67 to 1. In fact, traders have remained net-long since Apr 20 when GBPUSD traded near 1.4337; price has moved 6.8% lower since then. The number of traders net-long is 3.2% higher than yesterday and 2.2% higher from last week, while the number of traders net-short is 10.1% lower than yesterday and 13.7% lower from last week. GBP Maintains Bearish Trading Bias We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests GBPUSD prices may continue to fall. Traders are further net-long than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger GBPUSD-bearish contrarian trading bias. — Written by Dylan Jusino, DailyFX Research Article source:...

US Dollar Posts Bullish Continuation To 4-Month Highs On EUR Hedge...

US Dollar Index (DXY) Talking Points: The ONE Thing: the US Dollar is working on the highest close since November. To the surprise of many, the move higher in USD is absent a subsequent move higher in US yields. US yields still appear ready for a broader move higher after the softening period ends, but a stronger US Dollar without the support of a key factor shows the broad strength of the move. May’s FOMC Minutes will be released later today with a keen focus on whether voting members are concerned about the yield curve or rising back-end of the yield curve, and whether or not that will change their view of how many hikes are needed in 2018. Coordinated moves of US Dollar strength across the FX market. EUR/USD broke below the 1.17 marker to trade to the lowest level since November while USD/CNH has broken higher. While many do not necessarily track USD/CNH, the pair at the center of the US-China Trade War appears to have the telling power that should be on trader’s radar. I took a look at a trade set-up here. Bullish USD/CNH on ApproachingArticle source:...

USD/JPY Breaks Higher Toward 2018 Highs, US-China Trade War Fears Cede...

USD/JPY Rate Forecast Talking Points: The ONE Thing: If FOMC minutes lifts US yields further, USDJPY continues its ascent. A current limiting factor appears to be the underperformance of emerging markets that could weigh on risk appetite, but the possibility of a full-blown reversal appears limited as the JP bond market volatility remains depresses as the US’ picks up. USD/JPY Price Forecast:Identifying support in an uptrend, and holding a bullish bias should be easy with Ichimoku at your back. Support comes in at the 9- the 26-period midpoint at 110.27 and 109.53 respectively. Not familiar with trade wars and their history? We got you covered Monday’s price action saw USD/JPY trade to a four-month low on optimism that any tariff-induced trade war was on hold for now. The intraday high of 111.39 marked the highest price since January 18 and aligned with a rise in Japanese equities. Coming up with reasons to be short USD/JPY is difficult work at a time like this when CFTC data shows that institutions continue to come off their extreme US Dollar short positions, and rising yields look setArticle source:...