Forex Signals Brief for Nov 22: All Eyes on Lagarde
Rowan Crosby • 2 min read
Friday looks like it is set to be a fiery end to the trading week. With US-China tensions still unsettling markets and a host of top-tier data, we could see some big moves in the majors.
The main event of interest today will likely be the first speech by new ECB boss, Christine Lagarde. What is interesting is that the Frenchwomen has been in the job for three weeks now and we have yet to hear from her in any real way.
Some are suggesting that’s cause for concern as it indicates the ECB hasn’t quite got all its ducks in a row, as it pertains to monetary policy. Since officially taking over the role from Mario Draghi, we’ve seen the odds of a further 10bp cut fall to 40% from 60%. And we must remember, Draghi was a known dove, so the market is really going to be shaping up just what type of leader Lagarde might be.
Lagarde has not made her views clear to this point in time and the EUR/USD will be waiting with bated breath.
At the same time, we also get more data on the state of the German economy with their GDP print due for release. With a negative number being a real possibility.
While we will also have PMI data out of the UK, which will be a must-watch for traders of the GBP/USD.
It appears Friday is really shaping up as a busy one as we look to close out the week.
Forex Signal Update
The FX Leaders Team finished with two wins from two signals in another quiet yet profitable session.
EUR/GBP – Active Signal
Our EUR/GBP signal hit our take profit target yesterday and has bounced since then. We are in another short position here and the same thesis still applies.
AUD/USD – Active Signal
The AUD/USD has been soft all weak, really since the RBA released its surprisingly dovish minutes on Tuesday. As it stands, the 0.6800 level is holding as resistance and I feel that the Aussie wants to break down here. We’re short, waiting for that to happen.
I hope everyone has been following our BTC updates this week, as price has really been doing everything we’ve expected it to.
For the past few days, it was looking like price was going to crack the $8,000 level and sure enough, it did so with a bang.
It fell all the way down into prior support at $7,400, before bouncing. Bitcoin is really becoming a wonderful technical trade at the moment and is following these key levels almost to the dollar.
While this breakdown looks like a purely technical trade, our US Analyst Shain has a few ideas on the state of the fundamentals that could be weighing on BTC as well.