Forex Brief for Oct. 5: Can We Get a Bounce in Oil? - Forex News by FX Leaders

Forex Brief for Oct. 5: Can We Get a Bounce in Oil?

Posted Thursday, October 5, 2017 by
Rowan Crosby • 2 min read

Morning Traders,

It was an active day yesterday, where there were a number of short-term moves on offer for those traders who were ready and waiting. The Kiwi was a favourite and gave followers a couple of quick winners, and as we spoke about yesterday, the DAX rallied and took out our take profit target.

Today ECB minutes are due for release so if you’re a Euro trader, keep a close eye on our signals page for any development around 11:30 GMT.

 

Today's Watchlist

Crude Oil – We’re hovering around the key 50.00 level. This is a big level in oil.

EUR/JPY – We are trending higher. Expect that move to gather steam.

Nikkei – Stocks are really overextended. A correction is likely.

USD/JPY – The USD is back in vogue. Get ready for a big break higher over the next week or two.

You can follow all our updates live at our signals page.

 

Crude Oil: 50.00 Support is Here

Crude has been selling off sharply in recent weeks and it’s now time that we test the 50.00 support level. Shain has been speaking a lot about Oil yesterday and he has some great insights about potential support levels.

As it stands, Crude has drifted below 50.00 in overnight trade. We have a second important level at 49.50. We are going to be focused on some different trades in this range and Arslan has some more thoughts. Keep an eye out for any new signals that will be out as the US session opens up. It's a big day for oil traders

 

Crude Oil

Crude Oil – 240 min Chart.

 

Key Levels

Support

Resistance

50.00

50.22

49.50

50.50

49.18

50.62

 

 

Nikkei – Overextended and Looking for a Sell-Off

The Japanese Stock Market (Nikkei) has been tearing higher in recent weeks. Just like its U.S. counterpart the S&P 500, it’s looking very much overextended. We’ve twice now tested upper resistance and failed. On the 4-hour chart, it’s starting to look like a double top.

If we can test upper resistance at 20670 once again, get ready to take a short position. Be sure to keep our signals page open so you can be first to get this entry.

 

Nikkei

Nikkei – 240 min Chart.

 

Key Levels

Support

Resistance

20420

20670

20250

20700

20000

20800

 

It looks like we are going to be kept busy with the ECB minutes and as traders jostle for position ahead of U.S. unemployment tomorrow. Here’s hoping for another massive day in forex markets. Good luck guys!

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About the author

Rowan Crosby // Asia-Pacific Analyst
Rowan Crosby is a professional futures trader from Sydney, Australia. Rowan has extensive experience trading commodities, bonds and equity futures in the Asian, European and US markets. Rowan holds a Bachelor of Finance and Economics degree and is focused heavily on Investment Finance and Quantitative Analysis.
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