Forex Signals Brief for Oct 26: The Focus Turns to US GDP
Rowan Crosby • 1 min read
World stock markets managed to bounce back yesterday, led by Wall Street, but the major focus of the day will US GDP.
While tech stocks helped the markets bounce, after the US close, Alphabet and Amazon (two big FAANG stocks) reported and missed on revenues. That means markets will again be under pressure ahead of US GDP.
USD GDP is expected to come in at 3.3% which is a fair bit lower than the 4.2% we saw in Q2. But nevertheless, it’s a strong number and a sign of where the economy sits at the moment.
If the number is in-line or better today, that will keep the USD propped up and that means more pressure on the major pairs. Many of which are already on the decline.
Forex Signal Update
The FX Leaders Team finished up three and one on a day where the indices and gold were a clear focus.
GOLD – Gold continues to drift higher and is sitting on a major level at the moment. It could well breakout if the stock market continues to fall.
BTC – Volatility has really dried up in BTC of recent times. Price is really stuck in a $100 range for the most part. Look for a big break in either direction.
DAX – Active Signal
The DAX has broken the big support level at 11400 and that was the sign to get short. Selling the first pullback is a solid play here and we now have support turned resistance to offer us some protection above.
EUR/CHF – Active Signal
The EUR continues to be weak across the board as the ECB did what we all expected. On top of that, the trend is down. We have solid resistance above and we are nearing our take profit target.