Weekend Preview: Super Bowl Pick, Crypto-Meltdown, and EUR/USD Outlook
Shain Vernier • 2 min read
It has been a fantastic week of trading here at FX Leaders. Highlighted by President Trump’s State of the Union Address and the final FOMC meeting for FED Chair Janet Yellen, the markets have been action-packed. This weekend features a vacant economic calendar, so kick back and take some R&R.
It is Super Bowl weekend, with the New England Patriots facing off against the Philadelphia Eagles on Sunday. Typically, I like defense to win in big games and the Eagles D can be stout. An untimely turnover or two by New England and an upset may be in the making. If you are laying a few bucks on the action, best of luck!
Other than the NFL, there are not a whole lot of events on this weekend’s docket. Shortly after Sunday’s open, the Caixin China Services PMI (Jan.) will be released. In the wake of today’s action in U.S. Treasuries, any commentary on the Chinese economy is likely to bring investors to the USD. Aside from that, there are no primary economic events until Monday evening and the release of the RBA Interest Rate Decision.
It was not too long ago that cryptocurrencies were the darling of the financial world. The honeymoon is certainly over, with the one-month depreciations being severe:
Coin 1-Month Performance
Bitcoin Cash -54.3%
These numbers are truly staggering. It makes one wonder whether Ethereum is the future of cryptocurrencies.
It has been a theme all week long, but the 1.2500 and 1.2400 levels are dominate areas of support and resistance for this market.
Today’s action has the EUR/USD trading in a wide 109 pip range. Tight spreads and whipsaw conditions have defined the session.
As you can see from the daily chart, a double top formation is in development. With active resistance from 1.2500 to 1.2537, an intermediate-term short may be in the cards for early next week. Stay tuned.
Until Sunday’s open, have a great break and trade smart!