Forex Signals Brief for Oct. 12: Trade Opportunities After the FOMC Fallout
Rowan Crosby • 2 min read
As expected the FOMC minutes gave markets a little bit of a buzz and there were are few signals over the course of the days. We had a couple of trades in the Nikkei which is something I’ve spoken about over the last week or so as well as a nice winner in the USD/JPY which was mentioned in yesterday's forex signals brief.
Overall the USD has had a bit of weakness to it, while equities are still doing their best to grind on up, however, I suspect that investors are getting pretty nervous and people are waiting for a correction. There might be some more opportunities in equities very soon.
Today’s Forex Signals Watchlist
Gold – We’ve been bullish for a little bit in Gold, however longer-term the downtrend still remains. Watch closely for an opportunity here.
USD/JPY – We had a nice winner here yesterday so keep an eye on this pair for more opportunity today, especially longer-term given the USD weakness.
CAC – This is the French stock index. Unlike the U.S. the CAC just can’t break higher, making me think we are looking extra weak.
Top Trade Ideas
CAC – A Great Short Opportunity
As I mentioned the U.S. equity markets have been on an absolute tear. Generally, they drag the rest of the world along with them for the ride. However, if you take a close look at the CAC (French Stock Market Index), you can see on the chart that it just can’t push to the highs.
What that is telling me is that it is weak, relatively speaking and when the market corrects, this one will crack hard. Keep an eye out on the signals page for a sell entry on the CAC.
CAC -240 min Chart.
CAC – Key Support and Resistance Levels
NZD/USD – Can’t Break Resistance
The Kiwi has been on a massive slide in recent times. It has fallen off a cliff, driven in part by the stronger USD. Now that the USD has weakened, though, it hasn’t rallied. In fact, it can’t break above the 0.7100 key resistance level, even though it tried earlier today.
As it stands we have a current sell signal out on the NZD/USD with a downside profit target of 0.7052. Of course, the USD might weaken further, but I really like this trade.
NZD/USD – 240 min Chart.
NZD/USD – Key Support and Resistance Levels
Top Economic Data for Thursday
The U.S. dominates today with much attention on PPI. However, we also have ECB President Mario Draghi speaking which will be a big market mover. He’s scheduled to speak at 14:30 GMT. And of course, there are weekly Oil Inventories which will be the major focus for oil traders today.
I think there will be some fallout after the FOMC minutes so hold onto your hats. It should be a great trading day. Good luck guys!