Forex Signals Brief for Feb 4: Fears Subside For Now

US Market Wrap

The coronavirus took a back seat on Monday as some better than expected economic data helped boost sentiment, both in Europe and the US.

The Eurozone manufacturing PMI pushed higher last month, while the US PMI manufacturing data also crept into expansion territory.

The data was enough for the SPX to tick higher, while the Greenback ultimately pushed back up after a little bit of weakness late last week.

Today’s Agenda

There’s little on the agenda today in terms of economic data, outside of the RBA interest rate decision.

All the expectation is for rates to be kept on hold, but watch the statement closely as any hints of the next move will prove crucial to the fate of the AUD/USD.

In European trade, we will be getting a look at construction PMI out of the UK. The GBP/USD gave up some gains post-Brexit so this will continue to be a pair of interest this week.

Forex Signal Update

The FX Leaders Team finished with the one winning signal from one trade over the last 24 hours.

AUD/USD – Active Signal

We are long the AUD/USD as it battles the massive support level at 0.6700. We will know its fate in the next few hours as we get the latest RBA decision. A rate cut would sink the Aussie as it is not expected.

EUR/CHF – Active Signal

The EUR/CHF signal might have just put in a double bottom here. If price can now make a higher low, then this one can certainly turn around.

Cryptocurrency Update

BTC has done very little in the past 24 hours and remains in an area of consolidation between $9,250 and $9,500.

The fact that price is above the $9,000 level makes me bullish, for the time being, and as I said yesterday I am expecting a  test of $10,000

However, I do feel we need to wait on a break of the current range to dictate our bias.