Forex Signals Brief for Oct. 12: Trade Opportunities After the FOMC Fallout - Forex News by FX Leaders

Forex Signals Brief for Oct. 12: Trade Opportunities After the FOMC Fallout

Posted Thursday, October 12, 2017 by
Rowan Crosby • 2 min read

G’day Fellas,

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

CAC -240 min Chart.

 

CAC – Key Support and Resistance Levels

Support

Resistance

5347

5380

5300

5385

5264

5443

 

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.

 

NZDUSD

NZD/USD – 240 min Chart.

 

NZD/USD – Key Support and Resistance Levels

Support

Resistance

0.7059

0.7100

0.7050

0.7150

0.7000

0.7200

 

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!

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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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