Forex Signals Brief for July 11th – Technicals in Play Today!
Arslan Butt • 3 min read
On Monday, the market was boring as there weren't many fundamentals from the major economies ahead of U.S. reports. Thus, the major currency pairs paused their post-NFP party. Whereas, the investors "priced in" BOC rate hike expectations, making the Loonie stronger against its peers. Despite that, our forex trading signals on the equity markets including U.S. & European indices helped us capture consistent green pips.
Are you excited today? I certainly am. But, honestly, we may experience another dull day as we don't have major fundamentals to cover. So, we have to trade the levels and trade with minor stops and take profits rather than targeting massive gains, pip-wise.
GBP – MPC member Haldane speaks and is due to participate in a panel discussion at the launch of the 'Essentials of Numeracy' event in London at 10:00 (GMT). I'm not expecting much from him.
GBP – MPC member Broadbent is scheduled to speak at the Scottish Council for Development and Industry in Aberdeen at 11:00 (GMT). BOE MPC members vote on where to set the nation's key interest rates and their public engagements are often used to drop subtle clues regarding future monetary policy. Let's monitor them, but again, I'm expecting it to go unnoticed.
CAD – Housing starts is due at 12:15 (GMT) and it's expected to be better (200K) than the previous reading of 195K. It shows the annualized number of new residential buildings that were started during the previous month.
USD – JOLTS Job Openings are expected to release at 5.98M below the previous figure of 6.04M. Anyway, the impact is likely to be limited. The figure is coming out at 14:00 (GMT) today.
EUR/USD – Triple Top In Play
The single currency euro is still on hold after the fluctuations in the previous week. Now, investors are looking for further evidence to support a positive outlook for the U.S. dollar, which is likely to remain steady in anticipation of the U.S. inflation figures which will be released later this week.
In the meanwhile, the market is likely to stay calm and trade on low volume, perhaps, not giving us any worthy opportunities. However, we are digging for it and may share a trading signal soon. We need to monitor the high-level economic events from the United States, as the Eurozone doesn't have much to release this week.
Forex Trading Signal – Idea
We are progressively doing well with our weekly trade idea. The idea is to have a sell position below $1.1445 with a stop loss at $1.1475 and a take profit $1.1315. On the flip side, buy positions seem suitable above $1.1285 in this week.
EURUSD – 4-Hour Chart – Triple Top
Technical Outlook – Intraday
The EUR/USD is likely to hold below the major resistance of $1.1450. Looking at the weekly timeframe, the pair has formed a triple-top which extends from this important resistance zone.
On the daily time frame, the pair has completed a 38.2% Fibonacci retracement and the same level is extending a solid support at $1.1320. Read more about Fibonacci Indicator – Forex Trading Strategy to make more profitable decisions.
Talking about the lagging indicators, the 50-period EMA is still supporting the bullish bias for the pair.
In the absence of major economic releases today, the volatility could remain thin, thereby, the average movement of the major pairs can drop. So, to cope with this, we need to make sure that our stop loss and take profit levels are smaller than before. Keep an eye on our trading levels above as they may help you in mapping new trades!