Forex Signals Brief for Sep 25: Is There Confidence in Markets?

US equity markets pulled back a touch yesterday, fresh from making record highs over recent weeks. At the same time, the USD bounced after a rough week or two saw it fall out of favour.

The interesting economic data release today will be out of the US today, by way of consumer confidence. Analysts are expecting a reading of 132.2, which is down from the previous month at 133.4.

Given the backdrop of increased Chinese tariffs, consumers have every right to be a little shaky in regards to the confidence they have in the economy. Let’s not forget a tariff is effectively a tax and it is one that the consumers are ultimately faced with by way of higher prices.

I won’t be too surprised if we do get a miss on this number today, but either way, it will be a good gauge on sentiment after all the sagas of the last week or two.

It’s also worth watching the API Crude Oil Inventories late today. Oil is on a bit of a bull run and a bit of a draw might see more upside ahead.

Forex Signal Update

The FX Leaders Team had a solid start to the trading week, grabbing some profits in the USD/CAD, USD/JPY and GBP/USD.

DAX – The Dax has run up sharply from below the 12,000 level. Price has pulled back a little and this might be a nice time to look for a long entry.

Gold – Active Signal

Gold has been holding nicely below the $1200 level which is a positive sign for our signal. The USD lifted a touch yesterday which likely helped.

Bitcoin – Active Signal

Bitcoin has failed at the $6,800 resistance level and has fallen back to the pack a bit. It was always going to be a big ask to crack that level on the first try. If we put in a higher low on the pullback that will still be bullish.