Forex Signals Brief for Aug 22: ECB in Focus
Rowan Crosby • 2 min read
The big week of central banks continued on Thursday as we get a look at what the ECB insiders might have in store for Europe’s monetary policy.
There is a growing belief that the ECB is getting set to roll out some form of stimulus in September to try and counter the Eurozone’s lacklustre growth.
What exactly is in store is what is yet to be determined, but the hope is that the minutes from the last ECB meeting, might just reveal the clues.
As well as the ECB minutes, we also have German and Eurozone PMI. At the moment, those levels are well below the 50 mark, which is not a good sign and is exactly why we are seeing potential stimulus from the ECB.
The EUR/USD looks like it is in for a busy session ahead and could see some sharp moves if expectations are not met.
Forex Signal Update
The FX Leaders Team finished with 2 wins from 3 signals in what continues to be a really great week across the board.
EUR/USD – Active Signal
The EUR/USD has been holding relatively steady below the 1.1100 level quite comfortably and we are short looking for a leg lower. The stronger USD has certainly helped, but as mentioned there will be some volatility today so watch this signal closely if you are short.
Gold – Pending Signal
GOLD remains in a bit of a range at the moment and hasn’t been able to move all that far from the $1500 level as yet. However, given that it is trading above a key support level, our bias remains to the long side.
BTC has started to weaken considerably in the last few hours and has dropped the $10,000 level.
This is a huge psychological level and the fact that it hasn’t been able to bounce much is bearish.
That said, we have seen this level become a bit of a magnet and price has had a false breakout there before.
So before we pile into the short-side it will be worth watching how price responds at the previous lows around $9,500.