Markets are waiting patiently for the FOMC this week, but we are still seeing some good volatility.

Yesterday it was the GBP/USD that was busy thanks to more Brexit worries with their new leader Boris Johnson. Today the EUR/USD could be busy as well as we get a number of second-tier data points from across Europe.

In the morning, we’ll have French GDP and consumer spending followed by German consumer climate. Later in the session the one to watch is German CPI, which is expected to be 0.3% for the month of July.

The Euro continues to test the 1.1125 area as the Greenback has been very strong recently. So this will again be the major level of interest today.

Sometimes these busy days of data can slow down the price action so be aware of that during the European open.

Forex Signal Update

The FX Leaders Team finished with 2 wins from 4 signals in what was a busy start to the trading week.

USD/JPY – Active Signal

As mentioned the USD/JPY has been a little weak today as the BOJ didn’t make any real changes to policy today. This has helped our short signal, although we do have strong resistance overhead at the moment in the 109.00 level.

EUR/USD – Pending Signal

The EUR/USD has been sitting on top of this 1.1125 level and so far hasn’t broken through in any meaningful way. If that level breaks there could well be some more downside here and we are watching for a potential short signal.

Cryptocurrency Update

BTC has continued to ease off in the last 24 hours and so far it looks like the sellers have won the battle of the $10,000 level. 

Price did try to bounce but the sellers again stepped up at $9,600 and we have made a lower high in reality.

This all supports our bearish thesis and I will still be expecting a re-test of $9,000 in the coming days. If price can then take out that lower high, then we can reassess.

For now, the sector is bearish until proven otherwise.