Forex Signals Brief for Nov 8: Is the Santa Claus Rally Just Beginning? - Forex News by FX Leaders

Forex Signals Brief for Nov 8: Is the Santa Claus Rally Just Beginning?

Posted Friday, November 8, 2019 by
Rowan Crosby • 2 min read

Despite the negative headlines that we’ve been seeing all year long, stock markets for one have not been paying that much attention.

Clearly, there is plenty of money that wants (and needs) to keep flowing to Wall Street and that is keeping markets bid up strongly in the short-term.

Traditionally, there has been a spike in prices as we move into the Christmas period. But with the likes of the DOW and the SPX, there are many wondering if the march higher can continue for another two months.

Generally speaking the period from October-May is the strongest from a seasonal perspective and that could help add to this years really.

Of course, the overhanging concerns are surrounding the US-China trade deal and the Brexit worries in the UK. Brexit will come into focus as we move towards the UK election, while currently there is a sense of positivity surrounding the trade talks.

While US rates have been falling the barrier also appears high for further cuts, so that could slow this rally down. At the same time, the barrier for any hikes from this point looks even higher.

Canadian employment will be the main point of interest today, with the USD/CAD in focus. While Michigan Sentiment could impact stocks and the USD.


Forex Signal Update

The FX Leaders Team finished with 2 wins from 3 signals in what has so far been a relatively quiet trading week.


GBP/USD – Pending Signal

The GBP/USD continues to trade between 1.2800 and 1.3000. But we did see a shock with the BOE yesterday, as two members voted for a rate cut. That saw the Pound fall back to support in what could be a buying opportunity here.

GBP/USD – 240min.


USD/CAD – Active Signal

The USD/CAD is holding under a strong resistance level, however, we often see those levels act as a bit of a magnet. That’s what we are thinking here and we are hoping price will test 1.3200 again as that’s our take profit level.

USD/CAD – 240min.


Cryptocurrency Update

BTC remains in its range between $9,000 and the $9,500 resistance level as has been the case all week long.

The price action looks like Bitcoin wants to test that lower bound, but as we have to remember, the bulls were strong last time around.

Either way, that is looking like the big inflection point as we head into the weekend and a Friday is often a time when crypto’s start to get moving.

BTC – 240min.
Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies

About the author

Rowan Crosby // Asia-Pacific Analyst
Rowan Crosby is a professional futures trader from Sydney, Australia. Rowan has extensive experience trading commodities, bonds and equity futures in the Asian, European and US markets. Rowan holds a Bachelor of Finance and Economics degree and is focused heavily on Investment Finance and Quantitative Analysis.
Related Articles

Leave a Reply

Notify of