Recently all the action in markets has been on the geopolitical front, but today that changes as our attention turns back to the central banks and specifically the Eurozone.
Today’s meeting of the ECB is unlikely to see any change in official interest rates. However, what is on the agenda is that they are universally expected to end their QE in December. It’s hard to say if that means anything will come from today’s meeting as there will likely be plenty of technicalities, but listen out for ECB President Mario Draghi’s press conference as he will likely address some key issues including the current weak growth in the Eurozone.
Elsewhere we have another central bank meeting with the SNB. They too are not expected to make any significant changes to official rates, but we will look for more clues on their thinking going forward also.
Forex Signal Update
The FX Leaders Team finished with one winner with from the three signals in what was a relatively quiet day.
EUR/GBP – The EUR/GBP is back testing the 0.9000 level after a really huge week for the GBP. We have to keep watching this level to see if it can hold.
Gold – Active Signal
Gold is currently holding above the 1240 level so in the short-term we have a bit of an uptrend. As it stands we are in a long and short term signal here so we are looking for a short jump higher, but overall a longer fade back below support at 1240.
AUD/USD – Active Signal
The AUD/USD has so far been holding the 0.7200 level on the back of a slightly weaker USD. This level will need to drop for this signal to really go our way.
Bitcoin failed at the $3,500 level and is now back selling off. The fact that we have put in another lower high is a bearish sign that just confirms the downtrend that we can all see.
The lows are sitting around $3,200 and as mentioned I’m waiting on a flush to $3,000.
If the buyers come in and we can hold above $3,500 there might be some hope of a little bit of a relief rally, but for now, I am firmly bearish.