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