Jan 22 – Top Setups To Trade, Fundamentals Side Remains Light
Arslan Butt • 2 min read
Welcome back to another exciting week. This week is a bit busy with some high impact economic events. However, today, the market doesn’t have much on the fundamentals side. This means that technical analysis will be ruling the market.
Today’s Economic Events
Canadian Dollar – CAD
Wholesale Sales m/m – Later today, at 13:30 (GMT), the Statistics Canada is due to release the change in the total value of sales at the wholesale level. The data is forecasted to be 1% vs 1.5% in Dec 2017.
Eurozone – EUR
Eurogroup Meetings – The Eurogroup meetings are normally held in Brussels and attended by the Eurogroup President, Finance Ministers from Euro area member states, the Commissioner for economic and monetary affairs, and the President of the European Central Bank. The aim of this meeting is to discuss a range of financial issues, such as Euro support mechanisms and government finances.
Though the meetings are closed to the press, the officials usually talk with reporters throughout the day. The time of the meeting isn’t confirmed yet, however, it’s most likely to start during the European session.
Today’s Top Trade Setups
EUR/USD – Bearish Butterfly Rolling
The major currency pair EUR/USD kept trading below the suggested entry level of $1.2290. Over the course of one week, the EUR/USD has not violated the bearish harmonic pattern, called a bearish butterfly pattern. The pattern completed the C to D wave at $1.2300 and it may push the major currency pair towards $1.1225 region this week. However, this week’s economic events will determine its next moves.
EUR/USD – Key Trading Levels
Key Trading Level: 1.2255
EUR/USD Trade Plan
Investors are advised to keep a close eye on $1.2210. Below this, the EUR/USD can give us a selling opportunity with a stop above $1.2235 and take profit at $1,2265.
USD/JPY – Consolidates Near Support Zone
This week is very important for the Japanese currency pairs. The Bank of Japan is scheduled to release its interest rate decision tomorrow. The BOJ isn’t expected to hike the rate but considering the global central banks’ sentiments, we can’t say much. The Federal Reserve and Bank of Canada have already hiked their rates in the wake of better economic conditions.
The Japanese Yen was under heavy selling pressure but it managed to gain support at 110.350. You can see on the daily chart, the pair has formed a bullish Gartley pattern. The bullish Gartley signifies a potential for a bullish reversal.
USD/JPY – Key Trading Levels
Key Trading Level: 110.68
USD/JPY Trading Plan
The idea is to stay bullish above $110.65 with a stop below $110.45 and take profit at $111.500 and $112. Good luck and keep following for exciting trade ideas and signals.