Forex Signals Brief for Oct 16: European Data in Focus
Rowan Crosby • 2 min read
The attention is still very much on the state of the US stock market at the moment, but we will get a pause in the US top-tier data for the time being. As a result, sentiment will continue to dominate both equities and the USD.
Meanwhile, we do have a few top-tier releases out of Europe today. While the GBP/USD is getting pushed around on Brexit headlines on a near-daily basis. Today, price action will be looking for a lead from employment and wage data. There are signs of life in the UK economy and the pound will welcome any positive news here.
While the EUR/USD will likely take its lead from ZEW economic sentiment out of Germany. The USD has been the big driver of price recently and there has been little news to help push the Euro to new highs.
It’s an interesting week given the level of volatility in equities at the moment, so I expect there to be plenty of opportunities.
Forex Signal Update
The FX Leaders Team put in a really strong start to the trading week with 5 wins and 2 losses. Gold and the GBP/USD were busy on the day.
CAC – The CAC like most indices at the moment has been weak. We’ve already broken support and it appears price is lining up for a test of 5000.
AUD/USD – Active Signal
The AUD/USD has been consolidating around the 0.7100 level and over the last session, we’ve drifted higher. The higher time frame trend is certainly to the downside so I think this is a good spot to be looking for a short and a move back towards 0.7100.
Bitcoin – Active Signal
Bitcoin tried to push lower last week into the $6,000 level but we rebounded quickly. At the same time, we’ve spiked higher yesterday and we sold straight back off. Clearly, we are balanced at the moment, so we will have to wait for the breakout to gauge direction.