Forex Signals Brief August 22nd – Quick Trade Setups to Trade Today - Forex News by FX Leaders

Forex Signals Brief August 22nd – Quick Trade Setups to Trade Today

Posted Tuesday, August 22, 2017 by
Arslan Butt • 3 min read

Today, forex traders are likely to focus on the Euro & Canadian dollar due to the release of top-tier economic events. Therefore, it's best to look for opportunities in these pairs. Read on to find out how to trade these pairs today!

Top Economic Events Today

GBP – Great Britain Pound

At 8:30 (GMT), the Office for National Statistics will be releasing Public Sector Net Borrowing. Logically, if people are borrowing more, it means the supply of money will be increasing in the market. That's going to make the pound weaker. Thus, a lower than forecasted figure is considered good for a currency.

EUR – Euro

The German ZEW Economic Sentiment is due to be released at 9:00 (GMT) today with a negative forecast of 14.8, while the previous figure was 17.5. The German ZEW Economic Sentiment is a leading indicator of economic health. Investors and analysts are highly informed by virtue of their job, and changes in their sentiment can be an early signal of future economic activity.

CAD – Canadian Dollar

Core Retail Sales & Retail Sales are expected to be released at 12:30 (GMT) with a mixed forecast. This is something which is likely to increase the volatility of the market. Check out the USD/CAD trade setup below for more understanding about Canadian pairs.

Top Trade Setups Today

EUR/USD – Sideways Trend

The major currency pair is stuck in a broad trading range of  $1.1685 – $1.1835, as the investors are waiting for remarks by the ECB president tomorrow for clues about the tapering of Asset purchase program. We will talk about it tomorrow in more detail. Now let's take a look at the technical setup.

EUR/USD - 3 Hours Chart - Bearish ChannelEUR/USD – 3-Hour Chart – Bearish Channel

On the 4-hour chart, we can see EUR/USD is holding right below the resistance level of $1.1840. Remember, it's the same level which was working as a support before, but it's now working as a resistance.

Stochastics are in overbought and signaling a slight correction in the pair. Yet, we need to wait for the fundamentals to decide the direction.

EUR/USD – Key Trading Levels

Support     Resistance

1.1790         1.1851

1.1753         1.1888

1.1692         1.1949

EUR/USD Trading Plan

Fellows, the $1.1790 is a key differentiating level for bulls and bears today. Below this, the market is likely to give us further selling until $1.1735. While, on the higher side, we need to wait for the breakage of $1.1840 to enter a buy position.

USD/CAD – 61.8% Fibonacci Support

At the moment, the Loonie is holding right above the 61.8% Fibonacci support area at $1.2550. On the 4-hour timeframe, the pair has broken below the bullish channel due to recent gains in the Crude Oil prices and weakness in the U.S. dollar, perhaps because of the dovish FOMC meeting minutes.

USDCAD - 4 Hours Chart - Fibonaccci USDCAD – 4-Hour Chart – Fibonacci

The momentum indicators are suggesting a selling trend along with the 50- periods EMA. The decision will be influenced by the retail sales, which are coming out later today.

USD/CAD – Key Trading Levels

Support     Resistance

1.2538         1.2591

1.2519         1.2625

1.2485         1.2644

USD/CAD Trading Plan

Loonie is holding at a very crucial trading level of $1.2550, below this, the pair can target $1.2495 while above this it has potential to go for $1.2626. Better place your positions accordingly. However, it's better to wait until the release of economic figures to be sure about the direction of the pair. Good luck traders and stay tuned for more forex trading signals and live 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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