Forex Signals Brief for Nov. 13: The Majors in Focus with CPI and ECB Conference at the Forefront - Forex News by FX Leaders

Forex Signals Brief for Nov. 13: The Majors in Focus with CPI and ECB Conference at the Forefront

Posted Monday, November 13, 2017 by
Rowan Crosby • 3 min read

Hey Fellas,

Welcome back to what is shaping up to be a huge week on forex markets. Last week was a bit of a quiet one with the limited newsflow, but don’t fear as there are a ton of events happening this week. And that’s great news as it means opportunity.

Friday was a quiet end to the week for our forex signals, but we ended it with another great win in Gold. We’ve had a heap of great spots in gold recently so it’s one to keep watching closely. As the big data flows in this week, pay special attention to the majors as they will very much be front and center.

We have some major CPI figures out this week which includes the US as well as a huge meeting of the central bankers in Frankfurt. All the majors will be in focus as there is the potential for some fireworks.

The best plan will simply be to keep the forex signals page open for all the latest opportunities as this big week unfolds. Good trading guys!

 

Forex Signals Watchlist

EUR/USD – The Euro has popped higher and we have an open sell signal thanks to overhead resistance.

USD/JPY – The Yen has fallen back from the highs and is looking like a good buying opportunity.

AUD/USD – The AUD is in a nice range and we want to be selling the top of that channel.

GBP/USD – CPI figures are out this week which will dictate the direction. At the moment we are neutral on the pound.

NZD/USD – The Kiwi has pulled back and we are setting up in a bearish channel.

USD/CAD – It looks like we’ve topped out in the CAD for now, but we have CPI out on Friday which the market will be waiting on.

USD/CHF – We are rotating around the parity level and buying dips is a strong play here.

Gold – We keep finding winning trades in the yellow metal and US CPI this week will put this firmly in our sights.

 

News That Matters This Week

 

CPI Figures

We have a heap of inflation data out this week which will have a big impact on the majors. There are releases scheduled from the US, UK, Canada and the Eurozone. If inflation is strong, that means there is scope for interest rate rises.

 

ECB Conference

On Tuesday the ECB is holding a special conference in Frankfurt with a presentation called, "At the heart of policy: challenges and opportunities of central bank communication”. The names on the panel include the Fed’s Janet Yellen, the ECB's Mario Draghi, Bank of England boss Mark Carney and Bank of Japan Governor Haruhiko Kuroda

 

Trump Tax Cuts

Equity markets, in particular, are awaiting progress on US President Donald Trump's Tax reform plans, where he wants to cut corporate tax rates to 20% from 35%. However, Republicans are holding up proceedings as they want to delay the cuts until after the midterm elections, for fear of losing seats.

 

Top Trade Ideas

 

EUR/USD – We Are in the Sell Zone

The EUR/USD ran up into overhead resistance on Friday and couldn’t hold up as we suggested. There is a fair bit standing in its way around the current levels and we can see the long wicks on the candlestick charts which show the selling coming in every time we rally. As it stands we have a sell signal out on the EUR/USD with a profit target of 1.1630.

 

EUR

EUR/USD – 240 min Chart.

 

Key Support and Resistance Levels

Support

Resistance

1.1624

1.1678

1.1591

1.1691

1.1563

1.1700

 

USD/JPY – Support Holding Up

The USD/JPY has fallen from the highs of 114.50 and is back in the mid-113s. Last week the Yen managed to form a bit of a range and the 113.10 marked the lows. 113.00 is clearly a strong support level at this point and we will be looking to buy in this area. If the USD weakens further as we head towards CPI this week, then we will have a buy signal on our hands.

 

Yen

USD/JPY – 240 min Chart.

 

Key Support and Resistance Levels

Support

Resistance

113.10

114.00

113.00

114.50

112.52

115.00

 
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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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