Forex Signals Brief for August 30th – Top Economic Events To Trade Today - Forex News by FX Leaders

Forex Signals Brief for August 30th – Top Economic Events To Trade Today

Posted Wednesday, August 30, 2017 by
Arslan Butt • 3 min read

Despite the uncertainty in the market, our forex trading signal helped us pocket nearly 100 pips in Gold and NZD/USD yesterday. Today, the market will be influenced by the top economic events from the US. Let's see if we can make today as profitable as yesterday!

Top Economic Events Today

US Dollar – USD

ADP Non-Farm Employment Change is due to release at 12:15 (GMT) with a positive forecast of 185K compared to 178K in the previous month. The figure shows the estimated change in the number of employed people over the previous month, excluding the farming industry and government.

The ADP figure is considered important due to its high correlation with the Non-farm employment payroll. This means that if the ADP figure is positive, the odds increase for the positive NFP, basing investor's starts pricing in the NFP on the outcome of ADP.

Prelim GDP q/q is due at 12:30 (GMT) and it is likely to grow at the rate of 2.7%. The figure is slightly higher than the previous estimate of 2.6%. I will be sharing more tips on trading GDP today. Keep following for the next update.

FOMC Member Powell is due to deliver a speech titled "The Role of Boards at Large Financial Firms" at the Large-Bank Directors Conference, in Chicago at 13:15 (GMT). Since he is a voting member of FOMC, his thoughts on the U.S. economy matter. Nevertheless, most of the focus will be on the GDP & ADP figures.

Crude Oil Inventories are scheduled to release at 14:30 (GMT), the draw is forecasted to be -1.8M. This is less than the previous draw of -3.3M. This will impact the Loonie & Crude Oil prices today. Let's take a look at the key trade setups today.

Top Trade Setups Today

EUR/USD – Completes ABCD Pattern, Correction Awaited

In my previous updates, I wrote about the ABCD pattern on the daily timeframe, which was supposed to complete at $1.2025. But, prices went slightly higher than our target at $1.2070. Now, the EUR/USD is consolidating near $1.1970 as the market fell sharply after completing CD leg of ABCD pattern.

EURUSD - Daily Chart - Correction Bearish

EURUSD – Daily Chart – Correction Bearish

We can also observe a shooting star pattern followed by two consecutive bullish candles on the daily timeframe. The shooting star pattern demonstrates investors' selling sentiment. This could potentially be due to the upcoming high impact economic events from the United States. Check out FX Leaders Candlesticks Trading Strategy to enhance your understating about candles.  

EURUSD – Key Trading Levels

Support     Resistance

1.1921        1.2046

1.1871        1.2121

1.1796        1.2171

EUR/USD Trade Plan

The market is totally dependant on the fundamentals for clues about the upcoming trend. Just an idea, I'm more interested in staying in buy from $1.1950 up to $1.1990. Breakage below $1.1950 may give us more sell up to $1.1885.

USD/CAD –  Swing Trade 

The Loonie gave bulls another entry at $1.2450, helping them secure another 50 pips. Today, the pair is highly dependant on the crude oil inventories figures.

USDCAD - Bullish Entry - Daily ChartUSD/CAD – Bullish Entry – Daily Chart

I mentioned yesterday that the pair is all set to retest the double bottom level. Breakage below this level could encourage sharp selling until $1.2240. But the doji candle above this level is pointing towards the reversal.

The leading indicators Stochastic and RSI have started coming out of the oversold zone, signaling investors' bullish sentiment.

USD/CAD- Key Trading Levels

Support     Resistance

1.2449         1.2559

1.2390         1.2610

1.2339         1.2669

USD/CAD Trade Plan

The idea is to stay bullish above $1.2425 in order to target $1.2800. I will be monitoring the fundamentals and if go in our favor we should leave our position open, if not, we should cut and reverse. Good luck & trade with care.

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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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