The trading day has begun with some action due to boosted demand for haven assets. That’s because the US banks will remain closed today in the observance Martin Luther King Day. Therefore, we don’t have much on the economic docket today.

Today’s Economic Events

Great Britain Pound – GBP

MPC Member Tenreyro Speaks – Later today at 18:15 (GMT), the MPC (Monetary Policy Committee) member Tenreyro is due to deliver a speech titled “The Fall in Productivity Growth: Causes and Implications” at Queen Mary University of London.  

Why It’s Important To Hear Him?

BOE (Bank of England) MPC members vote on where to set the nation’s key interest rates and their public engagements are often used to drop subtle clues regarding future monetary policy.

New Zealand – NZD

NZIER Business Confidence- At 21:00 (GMT), the New Zealand Institute of Economic Research will be releasing the consumer confidence. It’s a quarterly figure and can impact the New Zealand dollar. Since there’s no forecast given, let me add that the above 0 figure represents the optimism and below shows pessimism. Last time in Oct, the figure came out as 5.

Today’s Top Trade Setups

EUR/USD – The Bearish Crab

In the early Asian sessions today, the greenback fell to the three-year low against a basket of currencies, while the single currency Euro took a breather after flying on hopes that ECB (European Central Bank) policymakers are gearing up for the contractionary monetary policy.

EUR/USD – Hourly Chart

Looking at the hourly chart, the EURUSD has formed a bearish harmonic pattern called a “Bearish Crab”. The pattern will be violated as soon as the EUR/USD pair crosses above $1.2225. Overall the trend is bullish and the RSI is also supporting the bullish bias of investors.

EURUSD – Key Trading Levels

Support     Resistance

1.2077    1.222

1.2032    1.2265

1.1961    1.2337

Key Trading Level:    1.2149

EUR/USD Trade Plan

Fellas, I’m keeping my eyes on $1.2220 as above this we may see further buying up to $1.2265 and $1.2300. Below this, the market can drop to $1.2149.

USD/JPY – Bearish Dragon Doing Well

This week, there is no major economic event from Japan, but it doesn’t matter as last week’s action proves the Yen is likely to be more sensitive to remarks from the Bank of Japan.

USDJPY – Daily Chart

Technically, the Japanese Yen is under heavy selling pressure. Looking at the daily chart, the USD/JPY has formed a Bearish Dragon which is keeping the selling mode on. After the recent breakout of an ascending triangle pattern, the pairs seem to go after $109.600.

USD/JPY – Key Trading Levels

Support     Resistance

111.03    111.22

110.91    111.29

110.84    111.41

Key Trading Level:    111.1

USD/JPY Trading Plan

The idea is to stay bearish but let’s wait for a slight pullback up to $111.050 before we take a sell position. Good luck and keep following for exciting trade ideas and signals.