Dec 11 – Top Setups To Trade In the Absence of Fundamental Catalysts!

Posted Monday, December 11, 2017 by
Arslan Butt • 2 min read

Welcome back, folks. I hope your weekend was as awesome as mine. It’s raining out there and I can feel the freshness in the air. Today we should focus on the technical views as the fundamental side is a bit dry today. Let’s take a quick look at them!

Top Events To Watch Today

Japanese Yen – JPY

Prelim Machine Tool Orders y/y – At 6:00 (GMT), Japan Machine Tool Builders Association (JMTBA) will release total machine tool orders. There are 2 versions of this report released about a week apart – Preliminary and Final. The Preliminary release is the earliest and thus tends to have the most impact.

Last time on Jan 15, the figure tick up quite surprisingly and dragged the Japanese Yen higher. Let’s see If it manages to do the same today.

Eurozone – EUR

Italian Retail Sales m/m is due to be released at 9:00 (GMT) but with a strong negative forecast of -0.1% vs. 0.9%. It’s the primary gauge of consumer spending, which accounts for the majority of overall economic activity. Yet, it leaves a very mild impact on the market.

U.S Dollar – USD

JOLTS Job Openings are scheduled to be released at 15:00 (GMT) with an almost neutral forecast of 6.03M vs. 6.09M in the previous month. On Friday, the Unemployment Rate and Non-farm payrolls were also neutral and failed to give clear direction to the market.

Top Trade Setups To Watch Today

USD/CAD –  Double Top & Ascending Triangle Pattern

During the previous week, the BOC (Bank of Canada) decided to keep the interest rates on hold at 1%. Honestly, no one was expecting them to hike the rate, yet the Canadian dollar fell sharply against fellow currencies.  Besides this, a surprise drop in Crude Oil prices despite the draw in inventories, adversely impacted Canadian dollar.

USDCAD - Daily Chart

USDCAD – Daily Chart ​

At the moment, the pair has formed an ascending triangle pattern which is proving a solid resistance to the pair at $1.2895. USDCAD has tested the same level twice in the pairs, thus making it a double top area. Here we got an opportunity to short the pair just for 40-50 pips as ascending triangle patterns are meant to break upward.

USDCAD- Key Trading Levels

Support     Resistance

1.2813    1.2871

1.2795    1.2889

1.2766    1.2918

Key Trading Level:    1.2842

USD/CAD Trade Plan

Let’s keep an eye on $1.2860 to stay bearish. Below this, we can take a sell entry with a target of $1.2800 and $1.2775.

USD/JPY – Get Ready For Swing Trade

Fellas, the Japanese Yen lost safe haven appeal last week due to strength in the dollar.  As a result, the investors initiated a dramatic buying in the USD/JPY.

USDJPY - Daily Chart

USDJPY – Daily Chart

Technically, the RSI and Stochastics are holding in the overbought zone. On the daily chart, the pair formed a bullish engulfing candlesticks pattern which gave us technical reason to stay bullish. Now, the bullish pattern is getting stronger. Especially, if the USDJPY completes another bullish candle on the daily chat. Three bullish candles are called “Three White Soldiers” and are unknown to represent strong bullish momentum in the pair.

USD/JPY – Key Trading Levels

Support     Resistance

113.18    113.56

113.05    113.69

112.86    113.88

Key Trading Level:    113.37

USD/JPY Trading Plan

Fellas, we need to keep a closer eye on $114.35 as long-term selling can be initiated below this level. However, for now, $113.35 is a crucial level to stay bullish for the target of $114. Do check our Forex Signals Brief for Dec 11​ for more insights of the forex trading signals. Good luck and trade with great care!

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