Forex Signals Brief for Nov 27: A Phase 1 Deal is Getting Close
Rowan Crosby • 2 min read
If it feels like deja vu this week, then it might just be the fact that the trade headlines keep on recirculating.
The latest developments suggest that the US and China are getting close on a phase 1 deal, which would be a massive boost for markets. The SPX suggests that investors are pretty confident that we will be hearing some positive headlines very soon based on the fact it keeps making record highs.
Trump himself has also admitted that it is him that is holding up the talks as he wants the very best deal. Whether that is simply a PR move aimed at the upcoming election remains to be seen. All the headlines are clearly starting to get more positive by the day though.
In terms of economic data, we have a busy US session ahead, thanks to the fact that we have a shortened week with Thanksgiving.
Today we get data on US GDP, Core Durable Orders and Pending Home Sales. Plus we need to watch WTI with the weekly inventory update.
With all the focus on a trade deal, the data might not play a big role, but given we have a fair bit of it, there could be some moves in the Greenback worth watching.
Forex Signal Update
The FX Leaders Team finished with two wins from two signals with a couple of nice opportunities.
GBP/USD – Pending Signal
The GBP/USD continues to tread water above support at 1.2800 and we will continue to wait on a good long opportunity.
EUR/JPY – Pending Signal
The EUR/JPY has been holding quite strongly under resistance for a while now. We are looking for a long signal, which could come on an attempt of that level.
BTC has been holding the $7,000 level as we suspected it might, at least for the short term.
As we can see on the charts, price actually looks like it is making an inverse head and shoulders type pattern, targeting that resistance around $7,400.
Like I’ve been saying, long-term I’m bearish, but don’t be surprised to see a little pop here and some consolidation.
We’ll keep waiting for a break of $7,000 and the next leg lower, but there could be opportunities to the long side for quick scalps.