Investors Expect Important Statistics From the US

During the last sessions, trading on currency majors is active enough. At the same time, a unidirectional trend is not observed. The dollar index (#DX) is in a sideways trend (97.90-98.30). Investors expect additional drivers. Trade negotiations between Washington and Beijing are still a key event in the financial markets. The US and China signed the interim trade agreement last week. US Secretary of the Treasury, Steven Mnuchin, said that Washington would not raise tariffs from 25% to 30% on Chinese exports $250 billion worth. Beijing, in turn, promised to increase purchases of US agricultural products. The interim agreement prepares the ground for more serious negotiations between US President Donald Trump and Chinese President Xi Jinping, which will be held at the APEC summit in Chile in mid-November.

finviz-dx-2019-10-15
Source: finviz.com

This week, some important statistics from the US will be published that will affect the alignment of forces on currency majors in the short term. These reports may also affect the Fed's views on further monetary policy.

We recommend paying attention to the Philadelphia Fed manufacturing index and a number of indicators on the real estate market, which will be published on Thursday, October 17 (15:30 GMT+3:00). This index determines the economic well-being of the manufacturing sector of the Philadelphia Federal District and has a rather strong influence on the dynamics of the US currency. Experts expect that in October the figure will slow down from 12.0 to 8.0. We recommend taking into account the difference between the actual and the forecasted values.

us-philadelphia-2019-10-15
Source: tradingeconomics.com

Let’s consider the current technical pattern on the EUR/USD currency pair

  • Support levels: 1.10000, 1.09400, 1.08850
  • Resistance levels: 1.10600, 1.11100, 1.11600
  • market-news-eurusd-2019-10-15

    At the moment, the EUR/USD currency pair is consolidating. The technical pattern is ambiguous. The trading instrument is testing the key support and resistance levels: 1.10000 and 1.10600, respectively. Indicators do not send accurate signals:

    • - 50 MA has crossed 100 MA;
    • - The MACD histogram is in the positive zone, but below the signal line.

    We recommend opening positions from the key levels.

    If the US publishes weak economic releases, we expect further recovery of the EUR/USD quotes. The immediate goal for profit-taking is 1.11100. The movement is tending to 1.11600-1.12200.

    An alternative could be a decrease in the EUR/USD currency pair to 1.09500-1.09000.

    Confirmations and market entry points should be looked for on lower timeframes. When tracking positions, we recommend using a trailing stop.

    by JustForex, 2019.10.16

    This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

    Open Account

Get Free Analytics

* required fields
Last Articles
All Articles
How to Become a Successful Forex Trader in Malaysia
With broad access to online brokerage services, everyone can become a trader these days. However, few people actually find success in FX. The reason might be that many of those who try trading skip some essential steps or simply do things wrong. Learn about the best ways to become a currency trader in Malaysia from this article.
Read more
How to Become a Forex Trader in Indonesia
Starting trading currencies in Indonesia is as easy as in the rest of the world. All you need to do is spend a few minutes of your time on opening a trading account and going through the verification process. However, this is hardly enough to start making money, let alone make a living out of forex trading. To learn about the best ways to trade currency in Indonesia, read this article.
Read more
Stop and Limit Orders in Forex
There are many gainful opportunities for traders in the forex market, but no one is immune to losses. That’s the reason why traders should employ an efficient trading strategy where both stop and limit orders go hand in hand with other essential aspects of the strategy.
Read more