Top Forex Trade Setups, Nov 29 – ECB President Draghi Speaks
Arslan Butt • 2 min read
- The dollar continued its losses as the Federal Reserve Chairman Jerome Powell said US interest rates were just below neutral.
- Macroeconomic events from Eurozone remain on the radar, especially ECB President Draghi’s speech and German Prelim CPI.
- How to trade the EUR/USD inflation rate today as well as USD/CAD
EUR/USD – Trading ECB President Draghi’s Speech
The market is extremely volatile over the Fed Chairman Powell’s sudden shift in tone. Anyway, the investor focus will shift to ECB President Draghi as he is due to speak at the Global Research Forum on International Macroeconomics and Finance in Frankfurt.
Mario Draghi isn’t expected to specifically address the monetary policy issue, but any remarks on QE (quantitative easing) and rate hike will be worth trading.
Besides the speech, the single currency remains in focus due to German Prelim CPI figures which are coming out during the European session. The single currency remains supported on a weaker dollar and technical indicators also support the bullish bias.
The EUR/USD edged up to trade at $1.1380, violating the double top pattern at $ 1.1370. But it’s also forming a doji pattern above a resistance cum support level of $1.1370. So, it could be risky to enter any trade for now.
Daily Technical Levels
Key Trading Level: 1.141
EUR/USD – Trade Plan
The idea is to stay bullish above $1.1375 with a stop loss below $1.1340 and take profit at $1.1410 and $1.1475. While selling is preferred below $1.1370.
USD/CAD – Trading the Bullish Trendline Support
The commodity currency strengthened over a slight improvement in the oil prices and a weakness in the dollar. On the fundamental’s side, it’s worth monitoring Canadian Current Account figures today.
Current Account – Fellas, it shows a difference in value between imported and exported goods, services, investment income, and current transfers during the previous quarter.
However, it will be awesome to trade any figure above -5B as this can drive USD/CAD 50/60 pips down in few seconds.
The USD/CAD plunged to $1.3260 to trade in the oversold zone. For now, the bullish trendline is extending a strong support to USD/CAD at $1,3240. In fact, the pair is trading in an ascending triangle pattern on the 3- hour chart. On the violation of $1.3240, loonie can go after $1.3170.
Daily Technical Levels
Key Trading Level: 1.3206
USD/CAD – Trade Plan
I’m looking to open a buy position above $1.3235 with a stop loss below $1.3190 and take profit of $1.3300.
Stay tuned to FX Leaders for more updates!