Forex Signals Brief August 8th – Quick Technical Setups to Trade - Forex News by FX Leaders

Forex Signals Brief August 8th – Quick Technical Setups to Trade

Posted Tuesday, August 8, 2017 by
Arslan Butt • 3 min read

Today, we aren't expecting any high impact news from the fundamental side, placing the ball in the technical court. Here’s what I’ll be watching today…

So far, the month of August has given us good trade opportunities despite the lack of top tier fundamentals. Our forex trading signals secured four take profits in a row on the Nikkei, S&P 500, EUR/USD & NZD/USD helping us gain a good number of pips. Let's look at today's new trade plans.

Top Economic Events Today

US Dollar – USD

At 14:00 (GMT), the Bureau of Labor Statistics will be releasing JOLTS Job Openings with a positive forecast of 5.74M, higher than the previous month's figure of 5.67M. JOLTS Job Openings shows the number of job openings during the reported month, excluding the farming industry. Though it's released late, it can impact the market because job openings are a leading indicator of overall employment.

Australian Dollar – AUD

RBA Assistant Governor Kent is due to speak at the Bloomberg Address, in Sydney at 22:35 (GMT). He's responsible for advising Reserve Bank Board members, who decide on matters relating to economics. His public engagements are often used to drop subtle clues regarding future policy shifts. Check out our FX Leaders news trading strategy article to learn how to effectively trade based on news events such as this.

Top Trade Setups Today

EUR/USD – Breakout of Bullish Channel

The EUR/USD hasn't moved much due to the absence of major news on Monday, keeping the technical levels intact. In my earlier update Forex Signals Brief August 7th – 13th, I pointed out the breakout of the bullish channel after testing the top edge near $1.1900.

EURUSD - 2 Hours Chart - 61.8% Retracement EUR/USD – 2-Hour Chart – 61.8% Retracement 

Like yesterday, the pair is consolidating below this channel, with an immediate resistance at $1.1840. The Stochastic is not in the oversold region anymore as the EUR/USD is heading towards 61.8% Fibonacci retracement at $1.1835. This could be a good level to place a sell somewhere around the $1.1840 trading level. You can find the intraday trading levels below.

EUR/USD – Key Trading Levels

Support     Resistance

1.1769    1.1816

1.1745    1.1839

1.1722    1.1863

EUR/USD Trading Plan

The scenario has changed leaving us with two options.

First, stick with the same plan of entering a sell position below $1.1840 in order to target $1.1795  and  $1.1735 with a stop loss above $1.1890.

Second, if today's market fails to break $1.1790, it will be a good sign to stay on the buying side.

NZD/USD –  Head & Shoulder In Play

Shorting NZD/USD was a good idea below $0.7400, especially on the breakage of neckline support. As mentioned in our previous analysis, the NZD/USD is progressively heading towards my earlier target of $0.7335. So far, it has dropped about 50 pips.

NZDUSD - Neckline Breakout - MondayNZD/USD – Neckline Breakout – Monday

As of now, there is a slight change in the technical scenario. On the 4-hour chart, the Stochastics has entered the oversold region (below 20), signifying that the bears are exhausted and they may take profit before entering the market again. Let's wait for a slight correction before taking another sell trade.

NZDUSD - 2 Hours Chart - Heading Towards TargetNZDUSD – 2-Hour Chart – Heading Towards Target

NZD/USD- Key Trading Levels

Support     Resistance

0.7334    0.7403

0.7306    0.7444

0.7265    0.7472

NZD/USD – Trading Plan

I'm looking to enter another sell below $0.7375 in order to target $0.7335 today. As we know, the market can exhibit thin volatility so make sure to target the nearest levels. Good luck & stay tuned for more updates!

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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