Forex Signals Brief for Feb 21: German PMI to Round Out the Week
There is quite a bit of key data set to be released in Europe today which will likely set the tone for the EUR/USD.
US Market Wrap
US traders decided it might be time to take some money off the table yesterday, as fears around the coronavirus appeared to have weighed on sentiment.
After what has been a bull run for both the Greenback and the SPX, the latter fell away although it was the tech sector that really slid the most.
The Greenback, on the other hand, continues to be somewhat of a shining light, as money continues to flow to the US, both from a safe haven perspective and simply because the economy appears to be on the improve.
Today’s Agenda
There is quite a bit of key data set to be released in Europe today which will likely set the tone for the EUR/USD.
That said, the EUR has been seeing significant outflows recently and has been selling off consistently for the past two weeks. So even the best of data today is still going to be facing a real uphill battle at the moment.
The main data points of interest are German manufacturing PMI and Eurozone inflation. Both numbers are a real worry with soft inflation in Europe still present while manufacturing in Germany still appears to be contracting.
At the same time, we’ll also get some key data from the UK with more PMI readings, so the GBP/USD could see some movement of its own. Overall it will be a busy session to end the trading week.
Forex Signal Update
The FX Leaders Team finished with four wins from five signals in what was a strong showing.
GBP/JPY – Pending Signal
The GBP/JPY has pushed up above R1 but we can see R2 is still present. We are on the lookout for a short here still.
EUR/USD – Pending Signal
The EUR/USD is in freefall as we can see here. We’ve been finding short opportunities all week, so keep an eye out for more today.
Cryptocurrency Update
BTC remains under the $10,000 level after yesterdays big drop.
As I’ve been saying, the action is tricky at the moment and would be tough to trade on a short term basis.
We also have to wonder why a large player would offload their long position so abruptly. While price looks to be finding a bottom, we must remember that there are higher timeframe players who are clearly looking to sell around this $10,000 level.
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