Forex Signals Brief August 21st – 27th – Central Banker Speeches In Focus - Forex News by FX Leaders

Forex Signals Brief August 21st – 27th – Central Banker Speeches In Focus

Posted Monday, August 21, 2017 by
Arslan Butt • 2 min read

Welcome back to another exciting week. We may experience some serious fluctuations in the market this week due to the speeches from the ECB president Mario Draghi and Fed Chair Janet Yellen on Thursday. Here is what to expect…

Top Economic Events This Week

US Dollar – USD

On Thursday, Fed Chair Yellen is due to deliver a speech entitled "Financial Stability" at the Federal Reserve Bank of Kansas City Economic Symposium, in Jackson Hole at 16:00 (GMT). This has important market implications in its own right, especially if she suggests that asset prices are overvalued.

In addition, Core Durable Goods Orders m/m will be released at 12:30 (GMT). It's forecasted at 0.4%, slightly higher than the previous figure of 0.1% and thereby likely to support the Buck.

Eurozone – EUR

This week, we have two speeches from the ECB President Draghi.

– On Wednesday at 7:00 (GMT), Draghi is expected to deliver opening remarks at the 6th Lindau Meeting in Economic Sciences, in Germany.

– On Friday, Draghi will be accompanying Yellen at the Federal Reserve Bank of Kansas City Economic Symposium, in Jackson Hole at 19:00 (GMT).

Great Britain Pound – GBP

On Thursday, the Office for National Statistics will release Second Estimate GDP q/q with a neutral forecast of 0.3%. The figure shows the change in the inflation-adjusted value of all goods and services produced by the economy and is considered the broadest measure of economic activity and the primary gauge of the economy's health.

Top Trade Setups This Week

EUR/USD – Descending Triangle Pattern

Taking a quick look at the 3-hour chart of EUR/USD, we can see a descending triangle pattern, demonstrating investors' bearish sentiment. For now, the pair is encountering resistance at $1.1750 and is likely to continue trading bearish towards $1.1690.

EURUSD - 3 Hour Chart - Descending Triangle Pattern EURUSD – 3-Hour Chart – Descending Triangle Pattern

The Stochastic is coming out of an overbought range, supporting the pair's bearish bias. The 50- periods moving average is also providing resistance at $1.1750. We should look for sell entries below these levels.

EUR/USD – Key Trading Levels

Support     Resistance

1.1685        1.1752

1.1643        1.1820

1.1575        1.1862

EUR/USD Trade Plan

I will be looking to enter a sell position below $1.1750 in order to target $1.1705 with a stop loss above $1.1770. On the other hand, buying above $1.1680 seems to be a good idea.

NZD/USD –  Head & Shoulder Pattern In Play

Looking at the 4-hour chart, the NZDUSD has formed a Head and Shoulder pattern with a neckline at $0.7405. A break below this will help sellers target $0.7335. However, above $0.7405, the pair has the potential to stay bullish until $0.7450. Odds are higher for the bearish breakout. Check out our FX Leaders head and shoulder trading strategy for a better understanding of the trade idea.

NZDUSD - 3 Hour Chart - Head & Shoulder Pattern

NZDUSD – 3-Hour Chart – Head & Shoulder Pattern

NZD/USD- Key Trading Levels

Support     Resistance

0.7360         0.7493

0.7309        0.7575

0.7227        0.7626

NZD/USD Trade Plan

The idea is to stay in sell below $0.7400 in order to target $0.7275, making sure to move your stops at break even after the trade enters the green zone. Good luck traders and keep following for exciting forex trading signals and market 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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