Forex Signals Brief for Oct. 25: Central Banks Ready to Rock the Majors

Hey Fellas,

It’s been a busy start to the week as the USD has continued its grind higher putting a fair bit of pressure on the majors. However, our attention now turns to the Central Banks as both the Bank of Canada (BOC) and the European Central Bank (ECB) come into focus with their interest rate decisions.

While there might be no official changes in rates, it’s often the talk that comes with the announcements that can be of most interest to forex traders and provide us with opportunities. So be ready over the next couple of days.

Our forex signals have had a golden run lately and we closed out two more winning trades yesterday in the NZD/USD and the Japanese Nikkei. The Nikkei has been on a massive run higher and I expect there to be more opportunities here this week.

The next few days have the potential to be very busy so keep watching the forex signals page closely.

Today’s Forex Signals Watchlist

USD/CAD – With the BOC being the focus of the day, there is every chance of strong momentum plays in the Loonie.

USD/JPY – We are currently at a big level and if we can break above it there is the potential for a lot more upside to come.

EUR/USD – The Euro might be quiet in the lead-up to the ECB meeting, but come Thursday this will be in play. At the moment we are seeing constant selling so any uptick is a great opportunity.

Nikkei – We just closed a successful buy signal and overall the Nikkei has been one of the best performers in the last week. Watch out for new signals in this one.

Today’s Top Trades

USD/CAD –  BOC Day

The USD/CAD has been pushing higher after the USD really got a bit run-up last week. We've taken out a big resistance level and we are attempting to crack another one.

While there might not be any expectations of a change in interest rates today, what is said might give us a better indication of what is going on. If we get a neutral tone about future rate movements then I expect us to rise above 1.2700. However, if things are more positive expect a move below 1.2600 and into the previous range.

USD/CAD -240 min Chart.

Key Support and Resistance Levels

USD/JPY – Key Resistance is Here

The USD/JPY and the Nikkei (Japanese Stock Index) have been two of the best momentum plays we’ve seen recently. The Nikkei gave us a profitable forex signal yesterday and we had a nice trade in the USD/JPY on Friday. Currently, we are at an important level, which is 114.00. If we can break above it then I think we will make another leg higher. If it falls away then we can find more good buying at the support levels below. This one has been trading really nicely for us.

USD/JPY -240 min Chart.

Key Support and Resistance Levels

Top Economic News Today

The economic calendar is looking quite full today, but most of the focus for forex traders will be on the BOC at 14:00 GMT. However, we also have GDP out of the UK at 8:30 GMT which will be a big market mover for pound traders. Buckle up, guys. It’s a big day!.