Forex Signals Brief for Sep 23: German PMI in Focus
Rowan Crosby • 2 min read
Data looks to be a little light on this week, but we could well be in for another busy one, with a number of key issues still far from resolved.
With the lighter calendar, there will be a fair bit of attention that turns back to the Fed speakers, to see what they have in mind for US monetary policy going forward.
If you recall, we recently saw the FOMC cut rates, but many took the accompanying commentary as rather hawkish. That said, the Fed’s Bullard was one that wanted an even bigger cut, so it is fair to say that the members are not quite on the same page just yet. There are a number scheduled to speak this week, so keep a close eye on the USD.
We are also waiting on more updates on Brexit as well as the US-China trade wars. There were headlines from Trump over the weekend, suggesting the trade wars could drag out for another year, so that could possibly weigh on markets on Monday as well.
And of course, the Saudi oil crisis rocked that rocked the WTI market will still likely create headlines in the oil market.
Today the main event of note is German Manufacturing PMI. The EUR/USD has been in a strong downtrend for months now and another weak result could be the catalyst for a break down.
Forex Signal Update
The FX Leaders Team finished with 9 win from 20 signals, in a tricky one that ended strongly.
Gold – Pending Signal
GOLD looks like it has held the $1500 level and is trying to push away to the upside. There is some resistance at $1525, so on a break, I would expect another leg higher.
EUR/USD – Pending Signal
The EUR/USD continues to trend lower and has done so since July. There is a bit of upside creeping into the USD as well, so look for further selling this week. 1.1050 should be solid resistance now.
BTC is basically smack bang on the $10,000 level and coiled as tightly as we could possibly get. The $9,500 region below is now strong support, while $10,400 is strong above.
Price will surely need to make up its mind soon as we have seen a significant contraction in volatility.
After jumping mid-week, the likes of ETH and LTC have all retraced those gains and are pulling back. So there is some belief that Bitcoin is holding the sector down at the moment. But time will tell is the bears can take out this key support level below or if it will hold up once again.