Nov 23 – Top Events & Setups to Trade Today
Arslan Butt • 2 min read
Good morning, all! I hope you followed our previous updates on the Federal Open Market Committee, and it's potential impact on the market. The market reacted exactly the way we predicted in Gold Trade Idea – FOMC Meeting Minutes In Focus and in our previous morning review update. The US dollar dropped, causing bullishness in Gold. Let's see what's important to follow today.
Top Economic Events Today
Today we need to monitor the economic events coming out from the UK, Eurozone, and Canada.
Great Britain Pound – GBP
Second Estimate GDP q/q – At 9:30 (GMT), the Office for National Statistics will be releasing the GDP figures. This is a change in the inflation-adjusted value of all goods and services produced by the economy.
Why is this important to us? This is the broadest measure of economic activity and the primary gauge of the economy's health. The GDP is expected to be released with no surprise at 0.4%.
Eurozone – EUR
Manufacturing & Services PMI Figures – At 8:00 and 8:30 (GMT), France and Germany are likely to release a slew of economic events including manufacturing and services PMI. These economic events will give the Euro a new direction. There aren't many surprises expected, looking at their forecast. Keep reading to see our forecast and trade idea on EUR/USD.
Canada – CAD
Core Retail Sales m/m – At 13:30 (GMT), Statistics Canada will be releasing the retail sales data. In the previous month, the figure was quite unfavorable and hit the Canadian currency. This month Canadian retail sales are expected to grow by 0.9% which is far better than last month's -0.7%. I'm going to monitor this so we don't miss any sudden movement.
Top Trade Setups Today
EUR/USD – Dovish FOMC – Sellers in Control
As mentioned in the trade idea discussed in "Nov 22 – Morning Review", the EUR/USD hit both of the targets at $1.1720 and $1.1770. At this point, the Euro is heading towards its next target level of $1.1860. It's not worth it for us to run behind a missed bus – we will catch it on the next level.
EURUSD – 4-Hour Chart – Sell Zone
On the 4-hour chart, we can see that the EUR/USD has entered an overbought zone. A retracement later is likely to give us a selling opportunity today.
EUR/USD – Key Trading Levels
Key Trading Level: 1.1793
EUR/USD Trading Plan
Today I'm planning to stay in sell below $1.1860 with a stop above $1.1890 and take profit at $1.1790 and $1.1735. Good luck and have a profitable day!