Forex Signals Brief for Oct. 18: Central Bank Speakers to Fire Up the USD - Forex News by FX Leaders

Forex Signals Brief for Oct. 18: Central Bank Speakers to Fire Up the USD

Posted Wednesday, October 18, 2017 by
Rowan Crosby • 2 min read

Morning Lads,

The nice start to the week continued yesterday as the FX Leaders team managed to bring you another couple of profitable forex signals. This time it was gold and the EUR/CHF that performed nicely.

As I touched on yesterday the USD was pretty important and I suspect we are looking at more of the same today. USD strength has helped the USD/JPY and put pressure on the EUR/USD. There are also a few big central bank speakers that might have a big say in how the trading session goes, so keep a close eye on them. There have been a fair few headlines surrounding interest rate hikes in the US so I suspect we might be hearing more about that today.

Good luck guys!

 

Today’s Forex Signals Watchlist

USD/JPY – We have an active buy signal out on the Yen and there is some strong support here.

EUR/USD – Weakness is still present and our long-term signal continues to be working well. There might be some short-term opportunities in the works.

Nikkei – The Japanese Stock Market has been on fire, but we’ll need a pullback to enter this one.

Gold – With a rising USD, gold has been under pressure. Lookout for more downside.

 

Today’s Top Trades

 

USD/JPY- Moving Higher

The USD/JPY was in focus yesterday and as it stands we currently have an active forex signal. That said I feel that we still have some long-term upside potential. As it stands the take profit is set at 112.39. I feel that there is a lot of room to move back to 113.00 in the coming days. Any further USD strength will make this happen.

 

Yen

USD/JPY -240 min Chart.

 

Key Support and Resistance Levels

Support

Resistance

112.00

112.27

111.75

112.50

111.50

113.00

 

 

Gold – Cashing in on the Sell-off

With a rising USD, gold has been suffering. Along with the lack of headlines from North Korea, the yellow metal has lost some of its lustre of late and there have been some good opportunities to short. I like the 1290 level as it’s been one that has been in play for us previously. It’s also where we will run into the 50 SMA on the 4-hr chart. A good spot to sell.

 

Gold

Gold – 240 min Chart.

 

Key Support and Resistance Levels

Support

Resistance

1284

1300

1280

1305

1265

1315

 

Top Economic Events for Wednesday

EUR – ECB’s Mario Draghi Speaking – 8:10 GMT – (MAJOR)

GBP – Average Earnings – 8:30 GMT

EUR – ECB Praet Speaks – 11:45 GMT

USD – FOMC Dudley and Kaplan Speak – 12:00 GMT

USD – Building Permits – 12:30 GMT

 

Like I mentioned earlier, keep a close eye on all the speakers today, especially Mario Draghi. They have the potential to really shake up forex markets. Have a great trading day 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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