Free Forex Signals – Fed in Tight Spot as USD Falls

EURUSD Daily Analysis: Our short-term bullish view came more than true this morning: we were looking for a challenge of 1.12 in the near-term (neckline we've been tracking), but once that neckline broke the flood gates opened and we've gone as high as 1.17 on heavy USD selling.

This rally is fueled by fears that the Chinese stock meltdown, which has dominoed into a global stock meltdown, paired with the Chinese yuan depreciation, will make the Fed less likely to raise rates in September - or this year at all. In fact, judging by the size of the rally and the volume, big money traders have already decided that the Fed will not raise rates in September.

Where do we stand on this issue, and the technical outlook of the EURUSD? Originally we had said we expected the Fed to raise rates in September despite the yuan depreciating, but with the yuan depreciating AND a global stock melt down? It definitely gives us pause and if the markets continue to behave like this it is hard to imagine Yellen raising rates in September.

Technically The pair is incredibly bullish in the short and medium term and we are looking to buy under 38.2% retracement levels at 1.1450.

4h Chart

Our Preferred Trades*: No limit order, but looking to get long on a dip below 1.1450 with candlestick confirmation, targeting a rally back up to 1.1550. Alerts will be sent out to PRO members if/when this setup develops.

Long-term Trend Analysis Chart

Yesterday's EURUSD SwingPRO Signal Result: No trades triggered yesterday.

Today's SwingPRO Signal: See preferred trade setup above.

*CandlePRO: CandlePRO can be used in conjunction with our daily analysis and "our preferred trades." For example, if we prefer "going short" or "selling a rally" then we would look for bearish candlestick signals after a rally or near resistance levels. Alternative if we prefer "going long" or "buying a dip" then we would look for bullish candlestick signals on price drops or near support levels.

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Join the Discussion!

  1. Dimitri
    August 25, 2015 at 14:20Reply

    Long from 1.1440…lets see…feeling heavy though but US results looking not quite convincing…

  2. Dimitri
    August 25, 2015 at 14:52Reply

    :) And there you have it – perfect response to posting something on a chat sight :) Price drops …lets see if its going to wake up soon…

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