Forex Signals Brief, Jan 1: Dollar Slips as Risk Appetite Spikes
Arslan Butt • 1 min read
Ringing in the New Year 2019 is a reason for celebration, for spending time with friends and family, and for looking back. Team FX Leaders wishes you a very Happy New Year and hopes that you will have many blessings in the year to come.
Getting back to the signals brief, the financial markets exhibited extremely thin volatility on New Year’s Eve, keeping our forex trading signals tossing in profits.
Speaking of the US dollar, the major currency edged lower in weak year-end trading on Monday. The recent tweet of Trump increased risk appetite which weighed on demand for safe-haven currencies. This time, it was the US Dollar which carried safe-haven appeal due to the trade war.
Forex Signal Update
After closing the previous week with 80% success rate, we are still holding three positions in the EUR/USD, NZD/USD and AUD/USD. The thin trading volume is taking the currency prices nowhere.
AUD/USD – Active Signal
The AUD/USD is looking especially bearish after breaking out of an asymmetric triangle pattern which extended solid support near 0.7050, a key level.
After a substantial bearish reversal, the AUD/USD price is subdued above a slight support area of 0.7030. We continue to prefer selling short on any pullback whilst price is contained under 0.7045 area.
AUD/USD – 120min
EUR/USD – Active Signal
The direct currency pair EUR/USD continues to consolidate in a tight trading range of $1.1475 – $1.1420. The 20 & 50 periods EMA are keeping the pair bullish. While the RSI and Stochastics are in a selling zone, confusing the market sentiment.
We will wait for the market open on Wednesday, as the volatility may rise on the back of ADP and NFP figures this week. Before the release, going long above $1.1420 to target 1.1470 seems to be a potential trade idea.
EUR/USD – 120min