Forex Signals Brief for Sep 24: US Jobless Claims in Focus!

Posted Thursday, September 24, 2020 by
Arslan Butt • 2 min read

US Market Wrap

The risk-off market sentiment was supported by the latest flare-up between the US and China over the spread of the coronavirus. On Tuesday, the tensions between the two nations escalated when, at the Annual General Assembly of the United Nations, which was held in New York, US President Donald Trump blamed China for the spread of the coronavirus pandemic all over the world.

During his testimony, Fed Chair Jerome Powell faced many questions regarding the next round of stimulus measures. On Wednesday, Powell referred to the ongoing dispute between the Republicans and the Democrats over the size of the stimulus package, with just six weeks to go until Election Day. However, lawmakers were not satisfied and kept asking about the Fed’s role in helping small businesses beyond the scope of the Fed’s current emergency lending program.

The Data Agenda

On the fundamental side of the market, all eyes will remain on the SNB Monetary Policy Assessment and the SNB Policy Rate, which are not expected to drive any major market movement. During the US session, the Unemployment Claims and Fed Chair Powell’s testimony are expected to drive further market movement.

Forex Signal Update

The FX Leaders Team hit 6 winners from 8 trades, taking full advantage of sharp movements in the market.

EUR/USD – Signal Pending

The bearish bias of the EUR/USD continues to dominate the market, as it is providing a selling bias at 1.1650. The bearish breakout at the 1.1650 level could extend the selling trend until the 1.1590 level, while resistance remains at the 1.1670 level today. The selling bias dominates.

Gold – Live Signal 

The XAU/USD is trading with a strong bearish bias at the 1,858 level. In the daily timeframe, gold has violated the descending triangle pattern, extending support at the 1,911 level, and now it is working as a resistance. On the lower side, gold may find support at 1,841, and it could bounce off above this level. The leading indicators, such as MACD, also suggest a selling bias in gold. 

Cryptocurrency Update

Trading in the BTC/USD was sharply bearish, seeing it drop below the immediate support level, to a resistance level of 10.540. The leading crypto pair has violated the upward channel, suggesting strong odds of a selling bias in the BTC/USD pair. For now, the Bitcoin may face resistance at the 10,540 level and support at the 10,200 level. Violation of the support levels could extend the selling bias until 9,959.

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