Morning Brief, Nov 16 – Top Forex Trade Setups, Mario Draghi in Highlights!
Arslan Butt • 2 min read
- The British Pound plunged after British ministers resigned in protest of a draft Brexit agreement, rekindling fears of a turbulent departure for Britain from the European Union.
- Despite the risk-off sentiment, gold holds below $1,216 – a solid resistance for the day.
- The Greenback continues to trade bullish against most of its major peers on the rate hike sentiments.
- Quick trade plan for EUR/USD keeping Mario Draghi’s speech in focus.
EUR/USD – ECB President Draghi In Focus
As you know, the British Pound is getting weaker over fundamentals causing a dramatic plunged in the GBP/USD. Despite the strong positive correlation between EUR/USD and GBP/USD, the Euro is getting stronger. What’s going on?
Well, the thing is, overemphasis on the Brexit talks is overshadowing the Italy debt crisis. Which is why the investors seem to move their funds from Sterling to the Euro.
EUR/USD – Technical Outlook
On the daily chart, the EUR/USD has taken a bearish turn to test the support come resistance level at $1.1470, but it failed to give us a bullish crossover. This adds pressure on the EUR/USD as the pair can stay bearish below $1.1475 today.
The EUR/USD pair may face an immediate resistance near $1.1375 and $1.1470 along with a support near $1.1300 and $1,1275.
Key Economic Events To Watch Today
ECB President Draghi Speaks – At 8:30 (GMT), President Draghi is due to speak at the Frankfurt European Banking Congress. He isn’t expected to speak about the monetary policy decisions, however any clue regarding upcoming policy action will be worth trading.
German Buba President Weidmann – He is also due to speak at the Frankfurt European Banking Congress at 13:00 (GMT). He is the Deutsche Bundesbank President and a voting member of the ECB Governing Council May 2011 – Apr 2019. He’s believed to be one of the most influential members of the council. Let’s see if has something to drive action in the market.
Daily Technical Levels
Key Trading Level: 1.1319
EUR/USD – Trade Plan
The market is lacking real fundamentals which is why we may not see a strong movement today. I will be looking to take a buy position on the violation of $1.1350 with a stop loss below $1.1315 and take profit at $1.1415. Below $1.1350, the EUR/USD can stay bearish until 1.1285.