Dec 20 – Top Economic Events & Trade Setups Today

Good Morning, traders.

We closed another day with some nice profits. Our forex trading signals did a great job as usual. Four out of four forex trading signals hit take profit. Today, the US tax bill finally heads to Senate vote. This is likely to encourage investors to try and catch some moves in the dollar & US stocks. Here are today’s other major economic events…

Today’s Top Economic Events

Eurozone – EUR

German Buba President Weidmann is due to deliver a speech titled “the euro area between short-term momentum and long-term challenges” at the Analysis Forum, in Milan at 13:00 (GMT). This isn’t likely to cause volatility.

U.S. Dollar – USD

Existing Home Sales – At 15:00 (GMT), the National Association of Realtors will be releasing the existing home sales data. This is the annualized number of residential buildings that were sold during the previous month, excluding new construction. It’s forecasted to be 5.53M vs. 5.48M. I’m not expecting any surprise here.

EIA Crude Oil Inventories will be worth trading today at 15:30 (GMT) as it may offer us some trades in the Crude Oil.

New Zealand – NZD

GDP q/q – At 21:45 (GMT), the Statistics New Zealand will be releasing the gross domestic product figure. This is the broadest measure of economic activity and the primary gauge of the economy’s health. The New Zealand economy is expected to grow at a lesser rate of 0.6% vs. 0.8% in September. This figure will help us determine trends in the NZD today.

Today’s Top Trade Setups

EUR/USD –  Sideways Trading

Fellas, the technical outlook of the EURUSD has not changed a lot due to the lack of trading volume.  However, the pair is peaking out of the descending triangle pattern discussed yesterday. The bearish trendline provided resistance at $1.1830. The pair is breaking above this level and it’s likely to target $1.1865 today.

EUR/USD – Daily Chart

EUR/USD – Key Trading Levels

Support     Resistance

1.1793        1.1849

1.1777        1.1865

1.1749        1.1893

Key Trading Level:    1.1821

EUR/USD Trade Plan

FX traders will be keeping a close eye on 1.1865 as it’s a solid level to enter a sell position. On the flip side, $1.1820 seems to be a good level to go long today.

USD/JPY – Head & Shoulder Pattern In Play

The USD/JPY chart is showing a really interesting trade setup. The pair has formed a head and shoulder pattern on the 4-hour chart. The right shoulder completes at $113.100 and provides a solid resistance at $113.100. The pair can find support at $112.250.

USD/JPY – 4-Hour Chart

Whereas the breakage of $113.100 will open further room for buying up to $113.750.

USD/JPY – Key Trading Levels

Support     Resistance

112.6         113.03

112.46       113.17

112.25       113.39

Key Trading Level:    112.82

USD/JPY Trading Plan

I would like to take a sell below $113.150 with a stop above $113.350 and take profit at $112.250 and $111.850. Good luck and stay tuned for more updates.