Forex Signals Brief for Oct. 24: Are Stocks Starting to Crack? - Forex News by FX Leaders

Forex Signals Brief for Oct. 24: Are Stocks Starting to Crack?

Posted Tuesday, October 24, 2017 by
Rowan Crosby • 2 min read

Hey Fellas,

Finally, we managed to get a bit of a pullback in US equity markets with the SPX having its biggest drop in more than seven weeks. Luckily for followers of our forex signals, the FX Leaders Team managed to nail a nice long entry in the SPX on the early pullback to find a great winner to start us rolling this week.

Markets have been pretty active to start the week and funnily enough, it seems like it's been the Japanese markets, both the Yen and Nikkei, that have been taking the lead. By anyone's measure the equity markets are overvalued and when they fall they might just fall hard, so it's worth paying attention as there can be some great momentum trades.

Remember there are some big news events towards the end of the week, so make sure you keep the forex signals page front and center.

 

Today’s Forex Signals Watchlist

EUR/USD – The Euro is firming up, but the long-term trend is still to the downside.

USD/JPY – After a big rally, the Yen has pulled back. This might be a nice buying opportunity.

Nikkei – The Japanese stock market has been taking the lead so far this week. We have a currently buy signal out and this one is charging.

Gold – Gold has pulled back from its big sell-off, giving us a nice look at some short opportunities.

NZD/USD – The Kiwi has been tumbling and we have a current sell signal out. This one is the top momentum play at the moment.

 

Today’s Top Trades

 

USD/JPY- Closing the Gap

The USD/JPY has really been leading the headlines so far this week. Along with the Nikkei (Japanese Stock Index), it has been a really strong performer. On Monday we gapped higher into 114.00, however over the course of the trading session that closed as we pulled back to the resistance turned support area at 113.50. With momentum still strong in the USD, there might be some good buying opportunities here around this level. The Yen and Nikkei have been great lately so watch out for some potential signals today.

 

Yen

USD/JPY -240 min Chart.

 

Key Support and Resistance Levels

Support

Resistance

113.50

114.00

113.25

114.50

113.00

115.00

 

Gold – Setting Up for a Short

Gold managed to pull back a touch yesterday. As the USD tested upper resistance and then pulled back, so too did gold. However, this retrace is good news. As it stands I’m very much bearish on gold and as we pull back, there are some good opportunities to be shorting gold around the 1288-1290 level.

 

Gold

Gold- 240 min Chart.

 

Key Support and Resistance Levels

Support

Resistance

1273

1290

1270

1300

1260

1305

 

Top Economic News Today

It’s another quiet day on the economic news front with only German Manufacturing due for release at 7:30 GMT. It will have an impact on the Euro in particular. Wednesday has a full calendar to contend with so that’s when action might start heating up.

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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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