Forex Signals Brief August 23rd – All about the Euro

Yesterday, our Forex Trading Signals on Gold, Nikkei, and Forex currency pairs had a good run despite the lack of volatility. Today we have a few more exciting trade setups, especially in the Euro currency pairs. Check it out…

 

Top Economic Events Today

Today, the market is focusing on the Eurozone due to several high impact economic events.

Eurozone – EUR

Today at 7:00 (GMT), Draghi is expected to deliver opening remarks at the 6th Lindau Meeting in Economic Sciences, in Germany. Whenever it's a central bank official on stage, the odds of volatility & fluctuations remain high.

Mario Draghi, as head of the ECB, controls short term interest rates; he has more influence over the Euro's value than any other person. Traders scrutinize his public engagements as they are often used to drop subtle clues regarding future monetary policy.

At the same time, we are expecting several Services & Manufacturing PMI figures from Eurozone Markit. Above 50.0 indicates industry expansion, below indicates contraction. Sharp variations between forecasted & previous figures will give us reason to enter the market.

 

U.S. Dollar – USD

At 14:00 (GMT), the U.S. Census Bureau will release New Home Sales. The figure is expected to be slightly better than the previous figure of 610K.

Later at 14:30, Crude Oil Inventories will be worth it to watch in order to trade the Crude Oil & Canadian Dollar.

 

Top Trade Setups Today

 

EUR/USD – Triple Top Pattern

The major currency pair traded exactly as forecasted in my previous Forex Signals Brief For 22nd August. The EUR/USD pair is still consolidating in a trading range of  $1.1685 – $1.1835. Today, this range is at risk as investors are waiting for ECB president for clues about the tapering of Asset purchase program.

EURUSD – 4-Hour Chart – Triple Top

On the 4-hour chart, we can see EUR/USD has retested the solid resistance level of $1.1840. The same level is now working as a triple top pattern. Breakage of these levels will determine the market's future trends. Refer to the support and resistance levels below to figure out how to position yourself after the breakage.

 

EUR/USD – Key Trading Levels

Support     Resistance

1.1729         1.1809    

1.1696         1.1856    

1.1649         1.1889

 

EUR/USD Trading Plan

Today, $1.1776 is a key differentiating level for bulls and bears. Below this, the market is likely to target $1.1795. Above $1.1776 the pair can target $1.1835.

 

EUR/GBP – Long Term Sell Setup

Though the Euro is highly depending on the ECB President and major economic events today, technically, the EUR/GBP pair is approaching a solid sell level of $0.9215.

EURGBP – 4-Hour – Bullish Channel

The pair is extremely overbought, not only on the smaller time frames (4-hours) but also in the daily & weekly time frames. Stochastic RSI is holding at 80. The prices have moved far away from the 50- periods moving averages, demonstrating chances of reversals. Check out FX Leaders Moving Average Trading Strategy to take more profitable decisions. 

 

EUR/GBP – Key Trading Levels

Support     Resistance

0.9157         0.9180    

0.9144         0.9190    

0.9134         0.9203

 

EUR/GBP Trading Plan

Investors are advised to look for sell positions near $0.9215 with a target of $0.9135. Remeber to follow strict money management because tomorrow we may experience another volatile day due to Fed Chair Yellen and ECB President Mario Draghi speeches. Good luck!