Forex Signals Brief for Oct 25: Stocks in Crisis as We Wait on the ECB
World stock markets are feeling the heat today as a weak lead from Wall Street has turned into a capitulation.
World stock markets are feeling the heat today as a weak lead from Wall Street has turned into a capitulation.
Yesterday, US stocks all fell with the NASDAQ leading the charge lower in late trade to finished down 4.5%. Asian markets are all lower, although China is trying its best to stage a rally from a low base.
In the forex world, the BOC did what was expected of it and raised official rates to 1.75%. The attention now moves over the ECB as they have their own interest rate decision. While there is little chance of a change, all the focus will be on the ECB press conference and what Mario Draghi has to say.
If he can spin a positive story the EUR/USD might see some buying. But in fairness that isn’t usually the way Draghi likes to play it.
With a strong USD and weak stock market, the stage is set for a very active session. So get ready for some excitement today.
Forex Signal Update
The FX Leaders Team finished up three and two with the EUR pairs being particularly active.
DAX – The DAX has cracked key support at 11400 and the sellers have stepped up in a big way. There might be more to come early in European trade.
S&P 500 – Pending Signal
The S&P 500 has had a really rough time of it in the last few weeks. We finally cracked the all-important 200 SMA and it appears the sellers are loading up at the moment. In the short-term, however, we have to remember that stocks markets largely mean revert. So don’t be surprised if we see a strong bounce today or tomorrow.
BTC – Pending Signal
BTC keeps making a series of lower highs and is pushing towards the $6,000 level. If we crack it and the break can’t hold up, look for a long signal and a retrace.
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