A Quick Look at the Market This Morning
Skerdian Meta • 2 min read
If you have just started following the forex market in the last few days/weeks, you must think that yesterday was a very calm day. We saw 100 pip moves in some forex pairs yesterday, but compared to the beginning of this week, yesterday the market was relatively quiet. The USD made some advancement, but all in all, it was more of a consolidation day.
This morning looks like the forex market is starting to roll again. The Euro is the weakest currency once again with EUR/USD breaking below yesterday´s low at 1.0860s. Right now, it doesn't look like a convincing break because we only moved about 10 pips below there and we´re already back up to the 70's. Still, the Euro seems like the weakest of the major currencies because the bounces have been extremely shallow, so bear that in mind before opening any longs.
The GBP, on the other hand, is the strongest currency of the pack. It finally broke above 1.26 and reached as high as 1.2674 not long ago. The price is getting close to the 1.28 level, which has been a strong support level on the way down, so it might turn into a solid resistance level. Last week, we made an analysis of this pair where we highlighted this particular level (1.28) for a possible long term sell forex signal. However, the market sentiment is strongly bullish for the GBP right now, so it´s safer to let this move be over first before we embark on our short trade.
Besides that, the UK Supreme Court can swing the Brexit process both ways in early December, which will pull the Pound up or down with it.
The commodity Dollars remain on the back foot again today, but the sentiment doesn't seem as negative as it was yesterday. EUR/CHF has been another sick dog recently.
The 1.08 support level has been the line in the sand for the SNB (Swiss National Bank), at least from what we have heard in their comment and, with this in mind, we have opened 2 buy forex signals here this week. Well, we must have known better than to trust the SNB. Remember in January last year when these guys killed half of forex traders after they removed the peg in the same forex pair?
Elsewhere in the world, the situation in Europe seems a bit brighter this morning with German inflation numbers a bit better than expected and the UK construction output moved back to positive territory after several months in contraction. Remember that North America is off today for Remembrance/Veterans Day, depending if you live in the US or in Canada.
Ah, just before I forget. While all these very important things were happening around the globe, a 70 year old man in Australia has ended in the hospital after a fight with a goat. Apparently, he was hiking around in the countryside when he was challenged by the goat, which obviously won the fight.