Forex Signals Brief for Oct. 11: Is the Euro a Sell Ahead of the FOMC Minutes?
Rowan Crosby • 2 min read
As the markets have been anticipating the upcoming FOMC minutes, it's fair to say that trading has been a little on the quiet side. Yesterday we only had a few signals in action with most still just in a holding pattern ahead of all the action on Wednesday afternoon.
It’s very likely there will be a few fireworks later today as traders absorb all the headlines and the FX Leaders team will be across everything. So make sure you are tuned in to the forex signals page, particularly around 18:00 GMT.
For now, we can take a quick look at some of the longer-term opportunities that we have in store.
Today’s Forex Signals Watchlist
Gold – We are looking to sell this bounce, however, the FOMC will be critical to judge the momentum.
Nikkei – Stocks continue to grind up on low volume so a correction is coming soon.
USD/JPY – This is starting to look like an enticing buying proposition as we near 112.00.
Top Trade Ideas
USD/JPY – USD Weakness is a Great Buying Opportunity
The Yen has been banging hard into the 113.00 level and failing. However, we need to remember that the momentum is clearly to the upside thanks to the USD charging higher. Yesterday there was some weakness and I would start keeping a close eye on the 112.00 as this might be a springboard to help rally us through the 113.00 level and beyond.
USD/JPY -240 min Chart.
USD/JPY – Key Support and Resistance Levels
EUR/USD – A Bounce Might Be a Great Point to Sell
The Euro has been trending downward lately and the recent spike in trade yesterday was down to a bit of news and some USD weakness. The question is can that last? I suspect that if nothing new comes out of the FOMC minutes then we are going to carry on with the downtrend and firstly test the near-term support at 1.1700 and then move lower.
The FX Leaders team currently have an open sell signal out on the EUR/USD with a profit target of 1.1559.
EUR/USD – 240 min Chart.
EUR/USD – Key Support and Resistance Levels
Top Economic Data for Wednesday
This is going to be a big day for trading, however, most of the action won’t happen until we hear what the FOMC minutes have to say which is due for release at 18:00 GMT.
Here’s hoping for another exciting day. I love the big news days as they can bring with it some serious volatility. Good luck!