Forex Brief for Oct. 5: Can We Get a Bounce in Oil?
Rowan Crosby • 2 min read
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.
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 – 240 min Chart.
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 – 240 min Chart.
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!