Morning Brief, Nov 12 – Top Forex Trade Setups While US Markets Remain Closed!
Today, the markets are likely to trade sideways as the economic calendar remains empty and offers no catalysts to trade. That's because..
- Dollar trading bullish against most of its major peers on stronger labor market figures and sentiments of a rate hike.
- The EUR/USD seems to violate the descending triangle pattern. Look’s like a good time to short the pair.
- Quick trade setups in the EUR/USD & AUD/USD as the US banks remain closed in observance of Veterans Day.
During the Asian session, the Greenback maintained its bullish momentum and advanced towards a 16-month high as investors foresee the US Federal Reserve to keep contracting the monetary policy. However, the Sterling remained under significant pressure amid risk over a Brexit deal.
Today, the markets are likely to trade sideways as the economic calendar remains empty and offers no catalysts to trade. That’s because the US and Canadian banks will remain closed in the observance of Veterans Day and Remembrance Day. Let’s have a quick look at EUR/USD.
EUR/USD – Violating the Descending Triangle Pattern
Recalling FX Leaders Weekly Update, Nov 12 – 16, the EUR/USD seems to trade in line with our forecast. The pair is peaking out of a descending triangle pattern, violating the pattern at $1.1335. The pair may remain in selling below $1.13350 until $1.1250 and $1.1165.
Daily Technical Levels
Support Resistance
1.1314 1.1358
1.1294 1.1381
1.125 1.1424
Key Trading Level: 1.1337
EUR/USD – Market Sentiment
Weekly – Strong Sell
Daily – Sell
Hourly – Sell
EUR/USD – Trade Plan
The idea is to stay bearish below $1.1330 with a stop loss below $1.1350 and take profit at $1.1265 and $1.1225.
AUD/USD – Pulling Back Below Double Top Retest
During the previous week, the Reserve Bank of Australia left the interest rate on hold at 1.50% in the wake of falling house prices and continued low inflation. Consequently, the Aussie felt a lack of demand as investors switched their investments towards the dollar – a currency in demand.
On the hourly chart, the AUD/USD formed a double top pattern at $0.7295 to fall below $0.7220. The prices are still holding above 20 & 50 periods EMA which will be there to extend support above $0.7200. It shows a bullish sentiment of traders. On the other hand, the recent daily close is a bearish engulfing which demonstrates a strong bearish sentiment of traders.
Daily Technical Levels
Support Resistance
0.7214 0.7246
0.72 0.7265
0.7168 0.7297
Key Trading Level: 0.7233
AUD/USD – Market Sentiment
Weekly – Buy
Daily – Sell
Hourly – Strong Sell
AUD/USD – Trade Plan
The idea is to stay bearish below $0.7235 with a stop below $0.7265 and a take profit at $0.7175.
Good luck!
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