Nov 20: Top Economic Events & Trade Setups In Forex Today
Arslan Butt • 2 min read
Good Morning, fellas. Welcome to another exciting and busy week. Though this week is going to exhibit thin volatility due to Black Friday but the major central bankers will keep the action continued. Check our Forex Signals Brief for Nov. 20 to have a clear insight about trading signals. This morning, I have a few hot trade setups, especially in the Euro and GBP currency pairs. Check it out …
Top Economic Events Today
Today, the market is focusing on a number of speeches from a couple of central bank's representatives.
Eurozone – EUR
Today at 14:00 & 16:00 (GMT), Draghi is expected to testify on the economy and monetary policy before the European Parliament Economic and Monetary Affairs Committee in Brussels.
Mario Draghi, as head of the ECB, controls short-term interest rates, and he has more influence over the Euro's value than any other person. Traders scrutinize his public engagements as they are often used to drop subtle clues regarding future monetary policy.
Great Britain Pound – GBP
At 18:30 (GMT), the MPC (Monetary Policy Committee) Member Ramsden is due to speak at King's College, in London. Since the audience questions are expected, it can cause slight volatility with any surprising thoughts about next monetary policy. Overall, I'm expecting it to go mute.
Top Trade Setups Today
EUR/USD – Fibonacci Retracement in Play
Looking at the technical side, the single currency Euro is getting weaker against USD. The bearish engulfing candle is fueling the selling sentiment. However, we still have an opportunity to enter the market.
EURUSD – 4- Hour Chart – Fibonacci Retracement
Have a close look at the 4- hour chart, the EURUSD is likely to find support at 38.2% Fibonacci retracement level of $1.1730 and $1.1675 61.8% retracement level.
EUR/USD – Key Trading Levels
Key Trading Level: 1.1791
EUR/USD Trading Plan
The idea is to stay bearish below $1.1790 and bullish above $1.1675 with a stop loss below $1.1640 and take profit of $1.1770.
GBP/USD – Choppy Trader
The Sterling isn't doing much but consolidating in a narrow trading of $1.3175 – $1.3270. The pair is entering the oversold zone. On the 4 – hour chart the Stochastic RSI is holding at 23 which is quite close to the oversold zone. For now, the GBP/USD is holding above 50 periods EMA and that's where we can expect a slight buying.
GBPUSD – 4 – Hour Chart – Trading Range
GBP/USD – Key Trading Levels
Key Trading Level: 1.3213
GBP/USD Trading Plan
I'm looking to stay bullish above $1.3165 with a stop below $1.3130 and take profit of $1.3265.
Though we don't have much on the docket, unexpected remarks from Draghi can cause fluctuations in the Euro currency pairs. Do check our update on the key central bank's monetary policy meeting minutes along with their potential impact on the market.