Morning Brief, Nov 22 – Top Forex Trade Setups, Thanksgiving Day
Arslan Butt • 2 min read
- The dollar traded bearish in the Asian session as demand for safe-haven currencies remains subdued.
- Global equities rebounded, while the Euro recovered over hopes for a resolution of Italy’s budget dispute.
- ECB monetary policy meeting minutes remain under the spotlight today, while US traders enjoy Thanksgiving.
- Watch out quick trade ideas on EUR/USD and USD/CAD today.
EUR/USD – Bullish Trendline Keeps the Pair Supported
During the early Asian session today, the dollar traded bearish against the bucket of six currencies in response to a slight recovery in global equities. Moreover, the single currency Euro also recovered on hopes for a resolution of Italy’s budget dispute.
Technically, the EUR/USD is trading slightly bullish at $1.1395 after placing a low below $1.1379. The bullish trendline is supporting the pair near $1.1375 and the series of doji candles followed by the bearish trend are suggesting a potential reversal in the pair. We can expect EUR/USD to continue trading higher until $1.1425 and $1.1450, while the support remains at $1.1375 and $1.1350.
Potential Economic Events to Impact
ECB Monetary Policy Meeting Accounts: The European Central Bank releases its monetary policy accounts four weeks after the rate decision. President Mario Draghi remained positive regarding the inflation position and about growth.
However, economic growth has significantly lagged and other economic signs have disappointed. Will we see a more dovish and worried stance by the Frankfurt-based institution? The publication may have a considerable impact as it is released on Thanksgiving and many Americans may be away, causing low market liquidity.
Daily Technical Levels
Key Trading Level: 1.1399
EUR/USD – Trade Plan
The idea is to stay bullish above $1.1370 with a stop loss below $1.1340 and take profit at $1.1400 and $1.1435.
USD/CAD – Second Swing Trade with +80 Green Pips
The USD/CAD strengthened due to a slight recovery in the oil prices. But most of the credit goes to the technical setups. A day before, we spoke about another long-term trade to sell the pair near $1.3301 with a stop above $1.3441 and take profit at $1.3222. Here we are today, and the pair is already trading at $1.3227.
On the 4-hour chart, the USD/CAD has entered the oversold zone near $1.3220. The pair has formed neutral candles above a strong support level of $1.3220 which is signaling a potential a bullish reversal today.
Daily Technical Levels
Key Trading Level: 1.3261
USD/CAD – Trade Plan
The idea is to stay bullish above $1.3185 with a stop below $1.3145 and take profit at 1.3250.
Good luck and stay tuned for more updates!