Forex Signals Brief for Oct. 26: The Euro is Ready to Fire on ECB Day - Forex News by FX Leaders

Forex Signals Brief for Oct. 26: The Euro is Ready to Fire on ECB Day

Posted Thursday, October 26, 2017 by
Rowan Crosby • 2 min read

Morning Guys and Girls,

Today is the big one for those of you watching the Euro. We have the monthly ECB meeting and as always there is the potential for fireworks. I’m not expecting a change in interest rates, but any changes to the bond-buying might fire things up.

We’ve been pretty bearish on the Euro and we currently have a long-term sell signal out on it, so it’s fair to say that the FX Leaders Team think that the EUR/USD is headed down.

We closed out two signals yesterday, going one and one with another great profit in gold. The yellow metal has been massive for our followers in recent weeks, with the sell-off proving to be really profitable for us.

The ECB is the headline act this week, so strap yourselves in for another massive day on forex markets.

 

Today’s Forex Signals Watchlist

EUR/USD – The Euro is trending down and we an open forex signals. It’s a huge day today with the ECB so watch out for more trading opportunities.

USD/JPY – We’ve tested 114 and failed and we are setting up for more long trades.

Nikkei – The Japanese Stock Index has pulled back after a massive run higher and might be presenting some more chances.

Gold – We are bearish on gold and there is a current open signal. The trend has been good to us and we will be looking for more opportunities today.

 

Today's Top Trade Ideas

 

EUR/USD – ECB Day Has Arrived

In what is the biggest market event of the week Mario Draghi returns to give us the news on interest rates. Here at FX Leaders, the team is pretty bearish on the Euro. This meeting probably won’t change that. What we can do though is look for opportunities to capitalize on our downward bias. If we can spike to the upside a touch, that might give us some more opportunities to short which is what we will be looking for today.

 

EURUSD

EUR/USD -240 min Chart.

 

Key Support and Resistance Levels

Support

Resistance

1.1737

1.1850

1.1700

1.1876

1.1670

1.1900

 

 

USD/JPY- Can’t Break 114.00

The USD/JPY has been keying of the major round numbers really well over the last few months. Once again we have reached a key level that seems tough to crack. 114.00 has been holding up strongly in the last few sessions, and I feel that each pullback is a buying opportunity. The USD has turned bullish and if we get some more traction, we are going to take out 114.00 sooner rather than later. With US GDP out on Friday, that might be the trigger.

 

USDJPY

USD/JPY -240 min Chart.

 

Key Support and Resistance Levels

Support

Resistance

113.50

114.00

113.25

114.50

113.00

115.00

 
 

Top Economic News Today

The end of the week is really big on the data front, with none bigger than the ECB today. We have the interest rate decision at 11:45 GMT, followed by the press conference at 12:30 GMT. That’s often when we get the real fireworks. The only other top-tier news today is pending home sale in the US which is out at 14:00 GMT.

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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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