Foreign Exchange

The EU granted the UK’s flextension until 31st October, four-month longer than PM May requested. Yet whilst today’s ‘meh’ reaction points towards Brexit fatigue, the coiling nature of GBP suggests volatility could be brewing. As Matt Weller pointed out just yesterday, it was more a question of how long an extension would be over whether […]

The bullish wedge on AUD/NZD continues to play out nicely, having reached a 10-week high as of yesterday. But the trend may be in need of a pause, before further gains materialise. If successful, the bullish wedge targets the 106.37 highs. Whilst some may prefer not to label it a wedge due to the prominent […]

Once only big institutions such as banks could trade foreign exchange (forex) but now there are many brokers that offer forex trading to private traders. It is an attractive trading instrument for people looking for liquid assets and markets. There are many brokers available, offering different currency trading pairs, so when you choose a forex […]

The US dollar index suffered its most session close in nearly 3-weeks yesterday. Given its tendency to trade lower throughout April and signs of weakness at the highs, we’re keeping an eye out for a break lower to signal a near-term top. Over the past 30 years, April has proven to be a tough month […]

Near the end of March, we outlined USD/CHF’s potential to rebound before its next leg lower. With the rebound having since occurred, we’re now watching closely for signs of bearish momentum to return. Part of the rationale for an ‘eventual’ break lower was based on the tendency for April to be the worst month of […]

A summary of the weekly Commitment of Traders Report (COT) from CFTC to show market positioning among large speculators. EUR: Large speculators are the most bearish on Euro since December 2016. AUD: Traders are their most bearish since November 2018, yet prices are failing to track lower. WTI: Bulls push their net-long exposure to their […]

Since the end of January, AUD/JPY has traded in a sideways range between 77.44 – 79.84. It’s unclear at this stage which side it will eventually break out of but, we see potential for AUD/JPY to trade lower from the highs of its range. Indeed, it appears to have favoured traders who sold near the […]

Having conquered the November high with yesterday’s breakout, the Dow looks up to its record highs with little in the way of technical resistance. Since its V-bottom, the index rallied over 20% since the December low in an almost straight line. Whilst the index spent a month coiling within a symmetrical triangle, an elongated bullish […]

The trend structure is picking up pace after respecting its 200-day average and breaking to a new cycle high. Whilst we could see a pullback from current levels, we’re looking to extend its trend. Matt Simpson takes a technical look. City Index: Spread Betting, CFD and Forex Trading on 12,000+ global markets including Indices, Shares, […]

Improved risk sentiment and higher oil prices could be supportive of CAD/JPY. So we’re closely watching for a potential break higher. Risk sentiment has been given a boost, thanks to the rebound from China’s PMI reads progress with US-China trade talks. Naturally this has been supportive of risk assets in general, but also for commodity […]