Forex Signals Brief for Apr 23: US GDP the Main Focus For The Week
Rowan Crosby • 2 min read
It has been a relatively slow start to the trading week, with many of the key world markets away for an extended Easter break. However, all hands are back on deck today and we will be hoping for some good volume and volatility once again.
The economic calendar is a little thin today, but there is some key data in the US session of note, which is new homes sales. The expectation is for a slightly worse result this month than last, but this might not be a huge market mover.
The other key event at the moment is earnings season in the US. There are a number of major tech names reporting this week, so the equity indexes could well be where most of the volatility will come from this week. Along with WTI, which has rallied strongly on news of Trump getting rid of the Iran sanction waivers.
Most of the attention this week will be on US GDP on Friday, as we gauge just how strong the US economy is at the moment so there should be a big buildup to that number.
Forex Signal Update
The FX Leaders Team closed out only one signal in gold yesterday and we have a few more that are still running given the quiet day.
EUR/USD – Pending Signal
The EUR/USD has fallen back beneath the 1.1300 level and is currently testing 1.1250. The momentum looks to be back to the downside here and we are short looking for a run of support.
Gold – Active Signal
GOLD has fallen away recently but has started to form a bit of a base around 1275. We have seen rallies recently after short and sharp price declines so we are long here with a longer-term position in gold.
Bitcoin has made a very strong start to the trading week and looks like it is getting set for a breakout (or at least a test) of the $5,400 level.
BTC has been coiling beneath this level for a few days now, which in and of itself is bullish price action.
As I mentioned during the session, if we test $5,400 on good volume, that is extremely bullish price action and could be the makings of a potential break out.
The $5,000 level remains key support but has not been sighted in a number of days.