Forex Signals Brief for Nov. 14: Euro Drifting Higher on ECB Conference Day
Rowan Crosby • 2 min read
It’s a great day to be in the markets as Tuesday marks the start of our massive run of events. While Monday was pretty slow, today we have the ECB Conference featuring the Fed’s Janet Yellen, the ECB's Mario Draghi, Bank of England boss Mark Carney and Bank of Japan Governor Haruhiko Kuroda.
There are sure to be some fireworks around and also the potential for some excellent forex signals from the FX Leaders Team. On the signals front, Monday was quiet, which can often be the case when traders are anticipating big events later in the week. However, as the trading day is unfolding we are already starting to see some big moves taking place. The Euro is drifting higher, while the NZD has fallen off a cliff.
This is a day not to be missed so be sure to leave the forex signals page open, so you’ll be first in line to get some great opportunities as the day unfolds.
Forex Signals Watchlist
EUR/USD – The Euro has started to find some strength as we await the action. Long-term the trend is bearish but spikes are possible today.
USD/JPY – The Yen is just above our buy level, but any dollar weakness might let us find a long.
AUD/USD – The AUD is trying to break down and looks weak.
GBP/USD – CPI figures are out today and the pound is in-play.
NZD/USD – The Kiwi is breaking to the downside. Look for opportunities to be a seller.
Gold – The yellow metal found some strength on Monday. We’ll be eyeing off another short entry here soon. As risk rises this is always a good play.
Top Trade Ideas
Gold – Shorting Ahead of US CPI
Gold has been active early in the week, but for the most part, the trend is still very much bearish. A key factor this week will be the CPI data out of the US. Any hint of increasing inflation can actually spark a rally in gold as it is a hedge for inflation. However, working against it is that the USD is likely to appreciate in value. I see a spike higher as an opportunity to be selling so watch out for any opportunities in the yellow metal today.
Gold – 240 min Chart.
Key Support and Resistance Levels
News that Matters on Tuesday
Traders will be predominately focused on the ECB Conference and in particular the panel discussion featuring the major central bankers. The talk is called, "At the heart of policy: challenges and opportunities of central bank communication", and is due to commence at 1000GMT (5AM ET). We are already seeing some Euro strength coming into the market.
UK CPI is also due for release at 9:30 GMT and is a huge data point for the pound.