The US dollar and Yen surged today. Expect the Yen to continue its asecnt, as the USDJPY target is not until below 95.71. Recent commentary was “I favor the downside as long as price is below the tren...

The open to the new trading week has offered the market the kind of volatility many were expecting after the US Congressional vote last Friday. However, the vote certainly hasn't instilled confidence ...

We have completely underestimated the need for US banks and funds to repatriate all forms of non-dollar holdings to shore up creaking edifices at home. Adding to the woe is the realisation of Eurozone...

The latest IMM data covers the week from September 23 to September 30 and were consequently gathered on the day following last week’s rejection of the US bailout plan by Congress, and thereby at a tim...

The steep downside channel that the euro was trading within since 22-09-2008 lead the pair to the 61.8% extension level for the downside wave that started on 15-07-2008. The 1.3555 level is considered...

Hesitant bulls have pushed USDCAD right up to notable resistance at 1.0800/25, but the momentum for a breakout hasn't fully developed. The indecision at this level suggests that regardless of the whet...

The pair is still in a downside channel as we near our medium term target at 1.3690 and the potention to extend its losses to 1.3580 in a short period of time if trading is below 1.4080 which is provi...

Since the beginning of May the USD/CAD has been trading in a bullish trend channel. After breaking the lower trend line in the middle of September, the market has shown a comeback to the channel and a...

The USDJPY is still in a range. I favor the downside as long as price is below the trendline from the 110.71 top. The 200 day SMA is sloping down (barely) and right at current price. Whichever way thi...

The most bearish count places the EURUSD in a 3rd of a 3rd wave from 1.4179. 1.3820 is potential short term resistance. Oversold RSI on multiple time frames warns of a larger pullback, so confidence i...

Moving at its own pace, USDCAD has been ushered back to major resistance through broad dollar buying; but hesitation once again reveals the different nature of this pair as compared to the other major...

We expect the pair to head towards the 11 September 2008 bottom at 1.3880 and we might see the pair go beyond this level indeed, from here we can see that the downside direction is still going despite...

Let's look at where we have been to see where we could go. The rally from 1.3877 is clearly in 3 waves but the decline from 1.4817 is in 3 waves to this point also. This suggests to me that waves A an...

The loonie can be seen working its way into a cup and handle formation on the one hour chart. The pair was rejected at 1.0660 and went into making the handle. It is likely that orders are piling up to...

Forex trading market seasonality is an effect widely studied as a primary mover of major currency pairs, as long-term studies suggest that certain seasonal patterns may be able to predict forex price ...

The lower the EURUSD goes, the more I am inclined to label the drop from 1.4871 wave X in a larger correction (or wave B of a flat or triangle). The drop counts better as a 7 wave drop than an impulse...

Another vigorous downside movement took the pair near the 1.40 psychological barrier. We see mixed signals on the Stochastic indicator on the four hour charts that will perhaps result in high volatili...

There remain a number of possibilities. While not clearly an impulse, the decline from near 1.49 is deep and accelerating. Remaining below 1.4576 keeps the most bearish count on track (in which a smal...

The EURUSD (and the USD in general) is at a crossroads. The advance from 1.3877 is in 3 waves to this point (corrective) and the drop below the short term support line favors bears. Still, it is likel...

As the pair failed to remain above the 1.4390 level yesterday, this resulted in downside movements taking the pair to the downside target at 1.4305. Today, trading returned above the 1.4380 level whic...

Yesterday's gains have been constructive and appear to be developing in a multiple ABC move that has reached 1.0485 thus far. While a 50% retracement in Wave x at 1.0409 supports this move higher shou...

The US dollar is at a crossroads. There are bullish and bearish patterns that are both valid right now. Things should clear up in the next few days though. The EURUSD (and the USD in general) is at a...

Euro/dollar hit a five-week high last Monday before returning most of the gains. It's basically stuck and needs more information before the next move. My model remains long, but the bias is down. Imm...

On Friday, I wrote that "a deeper correction of the 1.3877-1.4871 advance is preferred although structure is not clear at the moment (it rarely is during a correction). If the decline extends, then lo...

Risk aversion dominated speculative FX positioning in the week from 16 September to 23 September; carry positioning (long GBP, AUD, NZD and short CHF, JPY) is now as negative as ever. An interpretatio...

The pair is trading at the key support for the short term ascending channel at 1.4420-1.4425. We see the pair in an oversold area according to the Stochastic indicator on the four hour charts where fr...

Eur/Usd traded lower yesterday and tested the support levels again around 1.4550. The euro has already bounced a few times back up for more than 100 pips. Move on Usd/Cad to new lows surprised a lot o...

Intraday moves have been large. This action is often indicative of at least a short term change in trend. Coming under 1.46 the last 2 days is a sign of weakness and indicates to me that a larger decl...

At the beginning of this week, the USD/CAD broke through the rectangle and decreased. The subsequent week routine shows a horizontal trading channel with a support level at 1.0308 and a resistance at ...

The pair wasn't able to maintain enough momentum today to stay above the 38.2% correction level at 1.4700 for the upside channel that started on September 19, where from there we see the pair correcti...

On balance, the EURUSD ended little changed today (25th) but the intraday moves were large. This action is often indicative of at least a short term change in trend. Coming under 1.46 today is a sign ...

The Eur/Usd set-up discussed yesterday bounced higher as expected, while at the same time Usd/Cad stayed caught in the range, which price structure on the one hour chart looks like a possible triangle...

With the financial crisis still grinding on risk appetite and a rebound in commodity prices putting the spring back into comm bloc price action, our DailyFX Analysts are turning their attention to the...

In last night’s update, I wrote that "It is wise to abandon the bullish bias at this point. What I thought was a 4th wave is taking far too long. Although price has yet to slip below the parallel Elli...

Having tested all-time highs at 1.60, the Euro showed a Bearish Engulfing reversal candlestick formation on 07/22 and collapsed nearly 13%. Support was found at the psychologically significant 1.40 le...

The decline that occurred yesterday was a correction to the 38.2% fibonacci at 1.4600 for the upside cahnnel that started on September 19,2008. We are now in an ascending channel targeting this week's...

It is wise to abandon the bullish bias at this point. What I thought was a 4th wave is taking far too long. Although price has yet to slip below the parallel Elliott channel, it should soon. A reason ...

US Dollar gains are corrective, indicating that the Dollar trend is down for the time being. Still, there are important levels to watch going forward that may yield reversals. The EURUSD short term pa...

The Canadian dollar made another push down on Tuesday, to test the support 1.0321 from June 08 again. This pair looks like it is currently trading in the correction of the blue wave iv). If the Canadi...

Trading below the 1.4700 level could affect the daily and intraday trend. We see momentum indicicators are starting to adjust from the overbought area alongside direction indicators pointing to the up...

A small 4th wave may be unfolding. As long as price is above 1.4546, expect a push into 1.49 in order to complete 5 waves from 1.4071. Coming under 1.4546 (and/or the Elliott channel line) would poten...

Price action on USD/CAD (a 4-Hour chart of which is shown) has been approaching a confluence of support offered by two trendlines. This support occurs within the context of a rough, upward-consolidati...

The EURUSD likely faces a formidable challenge near 1.49. A sharp reversal at that point is not out of the question. Last night's comments were that “the EURUSD is vulnerable to a pullback soon (in a ...

Commodities went higher at the start of the new week, with oil trading towards the 120 area that bounced things lower very quickly. Interestingly, gold stayed below 911.48 high, so the wave count from...

Short-term pressure on the U.S. dollar will subside as the government's efforts to prevent a prolonged recession support the currency amid a slowing global economy, wrote Morgan Stanley currency strat...

The pair is highly oversold yet the direction is gradually inclining along an upside short term channel targeting the 1.4960 level which is the 50% correction for the downside trend that started on 15...

The US Dollar has lost about 5.6% against the top six of the world’s major currencies in the past 10 days and now looks nearly ready to begin strengthening again. The New Zealand dollar pairing is set...

The EURUSD experienced it second biggest gain in one day ever...rising over 2%. The pair is just below what I think will be strong resistance from the 50% of 1.6040-1.3877 and 8/21 high above 1.49. Fr...

Euro/dollar reversed aggressive losses to close higher last week after coining a near 2 ½-year low the week before. My model is long on profit taking and more sustained recovery should be under way, a...

The EURUSD is approaching the Fibonacci retracement zone of the decline from 1.6040-1.3877. The 38.2% is at 1.4667 and the 50% at 1.4919. This area is also a former congestion zone. The bias remains b...