Forex Signals Brief for Feb 24: Sentiment the Key to the Week Ahead
Rowan Crosby • 2 min read
US Market Wrap
US traders decided they wanted to take risk off the table on Friday and sold down stocks in a bid to sleep a little easier over the weekend.
More worries around the coronavirus were the main culprit and that sentiment has spread into Asian trade today. At the same time, the US Dollar remains bullish and we will be looking for a test of the 100 level on the US Dollar Index in the coming sessions.
We also saw the Democratic nomination taking shape, with Bernie Sanders the clear front runner. As mentioned previously, markets are clearly supportive of Trump and given Bernie’s politics, his views might be adding to the markets concerns at the moment.
The key economic data is going to be quite light this week and that will give traders a chance to focus on the sentiment of the day.
The main things to watch will be some German data in the form of business climate, employment and GDP and all will impact the EUR/USD.
In the US, we will also get GDP but we aren’t expecting any real change in the reading.
Early Saturday, might be the number of most interest to world markets as we’ll get Chinese Manufacturing PMI. We are already expecting this number to fall to 45 from 50, but this will be a real gauge of the economic impact that the coronavirus is having. So Friday could certainly be a day, traders take risk off the table once again.
Forex Signal Update
The FX Leaders Team finished with 10 wins from 13 trades for a 77% strike rate on the week.
GBP/JPY – Pending Signal
The GBP/JPY keeps on grinding higher and the price action hasn’t indicated it is ready to stop. We’ll keep watching this for a possible short this week.
US Dollar Index – Watching
The DXY is continuing its rapid rise and putting all the majors under pressure at the moment. If price takes out 100 that could be the big story of the week.
BTC looks like it is trying its best to take back the $10,000 level, but as we know, there is selling pressure around that point.
A clear sign is the fact that price has been making a series of lower highs. Every time it tries to push up, the sellers attack it.
With the $10,000 level as resistance as well, this will be a very interesting Monday and filing to break the most recent high will be very bearish for Bitcoin and the sector.