Forex Signals Brief for Oct. 20: USD is on a Tear - Volatility is Back - Forex News by FX Leaders

Forex Signals Brief for Oct. 20: USD is on a Tear – Volatility is Back

Posted Friday, October 20, 2017 by
Rowan Crosby • 2 min read

Hey Fellas,

It seems to me that markets are starting to come back to life after a period where they were a little dull. During Asian trade the US Senate passed a budget blueprint, paving the way for tax reform. This is sparking the USD big time!

Yesterday we were one and one with our forex signals, which continues the nice streak the FX Leaders team have going this week. Early this morning the USD/JPY rallied and we hit another nice take profit. The EUR/JPY has proved to be a great trade, while there are still a few active signals on that include Litecoin and the EUR/USD.

I think we are going to have an interesting day on our hands and the majors are all going to be under pressure given the news out of the US today.

 

Today’s Forex Signals Watchlist

EUR/USD – We’re sitting at a big level. I’m bearish and we are looking for more downside to come with a rising USD.

USD/JPY – 113.00 couldn’t hold up yesterday, however, we have ripped higher in Asian. This might provide more opportunities later today.

Gold – Gold had a bit of a rally, after a few days of weakness. As the USD rises, gold will likely fall so keep watching.

Crude Oil – Oil was a big market mover yesterday, falling away, however, the trend is still bullish. We can use this volatility so watch out for opportunities in oil.

 

Today’s Top Trades

 

Gold – We’ve Got a Pullback

Gold managed to retrace yesterday, in line with a fall in the USD. The yellow metal has been bearish for a little while now and a pullback wasn’t unexpected. However, the trend is still to the downside and there are a few key levels that we can watch closely for a pullback with 1290 being a major one of interest today. Given the strong USD, gold will be taking heat for most of the day.

 

Gold

Gold- 240 min Chart.

 

Key Support and Resistance Levels

Support

Resistance

1277

1290

1270

1300

1260

1305

 

 

USD/JPY- Charging Higher

The USD/JPY wasn’t able to hold the 113.00 yesterday and once again sold off. However, we have ripped higher in Asian trade and are now right back at that key level. We have a few options here that include looking for a larger breakout, or seeing if we fail and fall back down. We are on a knife's edge right now and need to wait and see how this plays out.

 

Yen

USD/JPY -240 min Chart

 

Key Support and Resistance Levels

Support

Resistance

112.50

113.00

112.44

113.44

112.00

114.00

 

 

Top Economic Data for Friday

CAD – CPI & Retails Sales (MAJOR)

USD – Existing Home Sales

 

I think things are starting to heat up, with a fair bit of activity and volatility. Keep the forex signals page front and center because there might be some action as today keeps playing out. Good luck today guys!

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies

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.
Related Articles
Comments

Leave a Reply

avatar
  Subscribe  
Notify of