Morning Brief, Nov 21 – Top Forex Trade Setups, US Economic Events Awaited
Arslan Butt • 2 min read
- The dollar traded firm against major peers, extending overnight gains as investors avoided riskier assets in favor of safe-haven currencies.
- Core durable goods orders and revised UOM consumer sentiment remain under the spotlight today.
- Check out our quick trade ideas for EUR/USD and USD/CAD today.
EUR/USD – Doji Pattern Signals a Bullish Reversal
On Tuesday, the dollar traded firm against the bucket of six currencies, extending overnight profits as investors avoided riskier assets in favor of safe-haven currencies. Most of the bullish moves came in response to escalating worries about slowing global growth and the US-Sino trade war.
On Wednesday, the single currency Euro has started getting stronger upon a slight weakness in the dollar. The side effects of the trade war discussions are overshadowing Italy’s debt crisis. The US and China are likely to speak at the G20 Summit on Nov 30 – Dec 1 and the odds of positive negotiations are pretty high which may cause a sell-off in the dollar.
Technically, the EUR/USD is trading slightly bullish at $1.1375 after placing a low below $1.1360. It has formed a couple of a doji patterns followed by the bearish trend engulfing hammer pattern, and then a strong bearish trend. Typically, these sort of patterns often reverse the trends.
That being said, we can expect EUR/USD to continue trading higher until $1.1535, while the support remains at $1.1310.
EUR/USD – Trade Plan
The idea is to stay bullish above $1.1350 with a stop loss below $1.1320 and take profit at $1.1400 and $1.1435.
USD/CAD – Swing Trade Hits Profit
The commodity currency weakens against the Greenback due to a strong bearish rally in crude oil. As we spoke earlier, crude oil is suffering a lot due to bearish fundamentals and this is ultimately spilling its impact onto the Canadian dollar.
Most of the bullish trend in the USD/CAD was caused by a stronger dollar. The technical side of the market seems to offer another potentially profitable trade setup.
On the 4 hour chart, the USD/CAD has entered the overbought zone near $1.3300. The pair has formed a bearish engulfing pattern which is signaling a potential bearish reversal below $1.3315 today.
Daily Technical Levels
Key Trading Level: 1.3174
USD/CAD – Trade Plan
Keeping the technicals in mind, team Fxleaders have opened a long-term forex trading signal on USD/CAD. The signal is to stay bearish below 1.3301 with a stop above 1.3441 and take profit at 1.3221.
Potential Economic Events to Impact Trading
Core Durable Goods Orders m/m – Today, the data is due at 13:30 (GMT). This figure is expected to rise by 0.4% which is way higher than 0% in Oct.
For the newbies, it’s a change in the total value of new purchase orders placed with manufacturers for durable goods, excluding transportation items. It’s a leading indicator of production – rising purchase orders signal that manufacturers will increase activity as they work to fill the orders.
Daily Technical Levels
Key Trading Level: 1.1437
Good luck and stay tuned for more updates!