Forex Signals Brief for Nov 22: ECB Minutes in Focus
Rowan Crosby • 1 min read
Now that it is a holiday in the US, the attention can finally turn to Europe and the ECB Minutes. The last few weeks have seen plenty of selling in US markets and that has somewhat overshadowed the action out of Europe.
Although there is little by way of expectation, for any real headlines from Mario Draghi and the ECB, there are a few things that are worth looking out for.
Keep watch for any signs of concern around the slowing growth. Draghi doesn’t appear to be overly worried at this stage, but it is an important factor.
Similarly, there might well be some comments on pulling back from QE in December and generally the potential for rate hikes ahead.
Forex Signal Update
EUR/USD – Pending Signal
The EUR/USD continues to hover around the 1.1400 mark. Recent highs have been 1.1500 and 1.1450. So we are in making lower highs, which is a bearish sign. If we fail at 1.1400 again that is certainly a further sign of weakness.
Should we break the lows around 1.1368, then we might be in for some more selling today.
Bitcoin and the other major cryptocurrencies have managed to bounce and so far BTC is holding above the $4,000.
While this certainly isn’t a sign of a turnaround just yet, being green is a positive given the price action recently. Many analysts are still calling for price to go lower with estimates coming in between $2,500-$3,500 in the short term.
I think BTC will hit $3,000, just given the long-term support we have at that level.