Thursday starts with the weakness on the American Dollar and new all-time highs on the SP500. The second part should not be a surprise but the weakness of the USD is something new in the 2020.

To show You the drop on the USD, we will use the DXY, so a Dollar Index. We already mentioned this instrument this week and we were obviously bearish. We pointed out at the shooting stars candles on the daily chart, which were bouncing from the major down trendline. Price could not resist such a big selling pressure and went down confirming the negative sentiment towards the American currency.

Weakness of the USD has implications all over the globe. For example on the price of commodities. Decline on the Dollar usually means rise on the Gold. On 14th of January, Gold drew a hammer candle on the daily chart. That additionally looks like a second bottom in the double bottom formation. Both structures are bullish and it seems that the price will continue to go up.

Long time – no see for the NZDUSD, which looks ready for another bullish wave. I think that Kiwi is still influenced by the big inverse head and shoulder formation from September. Recent drop was just a correction, which most probably ended yesterday with the price drawing a hammer on the daily chart. Today, kiwi is breaking the mid-term dynamic resistance and is showing a willingness to climb even higher. The sentiment seems positive.

Trading FX/CFDs on margin bears a high level of risk, and may not be suitable for all investors. Before deciding to trade FX/CFDs you should carefully consider your investment objectives, level of experience, and risk appetite. You can sustain significant loss.

Analysis feed

Latest Forex Analysis

Editors’ Picks

EUR/USD near daily lows with mixed US data

The EUR/USD pair continues trading just above the 1.1000 level, as US Durable Goods Orders rose by 2.4%, largely surpassing the market’s expectations, although core readings plummeted in the red.


GBP/USD unable to recover, barely above 1.3000

GBP/USD trades a handful of pips above the critical 1.3000 figure as looming BOE and Brexit weigh on market mood while the dollar remains the strongest.


Bitcoin moving on the razor edge

Yesterday's positive day along the crypto board has brought the BTC/USD pair to the borderline between a bearish market and a free space where it can grow again in search of new historical highs. 

Read more

WTI bounces off lows, back above $53.00/bbl

After hitting new lows in levels last seen in early October 2019 near $52.00, prices of the WTI have managed to regains some attention and have retaken the $53.00 mark per barrel.

Oil News

USD/JPY Forecast: Consolidating at lows, bearish

Coronavirus-related fears and upcoming first-tier event keeping investors in cautious mode. US Durable Goods Orders seen posting a tepid advance in December. USD/JPY at risk of resuming its decline once below 108.65.


Forex Majors