Forex Signals – EURUSD Eyes on Bernanke
Recap: We did not open any new EU trades yesterday as we started off with the intraday update and then there were no S/R breaks to trigger our trades.
Lots of big news today but the biggest of them all is Bernanke’s semi-annual Senate hearing where he will deliver Fed monetary policy and drop hints about QE3 and the state of the US economy. Traders will be especially interested about QE3 as any positive news about it (meaning it is likely to happen) should drive risk appetite (EU bullish) while news that he is not keen on QE3 should smother risk-appetite (EU bearish, USD bullish).
We expect Bernanke to be dovish on QE3, meaning we expect a bearish result by the end of the week (short term news events are notoriously difficult to time right as positions get “whipped” out). We will continue to let the charts guide our entries, however, and will look to get short on a support break today.
Today’s Important News Events:
|01:30||AUD Reserve Bank Board July Minutes|
|08:30||GBP Consumer Price Index (YoY) (JUN)||2.8%||2.8%|
|08:30||GBP Core Consumer Price Index (YoY) (JUN)||2.5%||2.2%|
|09:00||EUR German ZEW Survey (Economic Sentiment) (JUL)||-20||-16.9|
|12:30||USD Consumer Price Index (YoY) (JUN)||1.6%||1.7%|
|12:30||USD Consumer Price Index Ex Food & Energy (YoY) (JUN)||2.2%||2.3%|
|14:00||USD Fed’s Bernanke Delivers Monetary Policy Report to Senate|
|*To see a more extensive list of news events (not just those we consider important), visit our Forex Calendar.|
Trading Idea: As we mentioned above we are only looking to get short on a support break today with targets at 20/20/20/20 for 80 pips.
There is a long to be had on a resistance break however we find that horizontal S/R lines are lower probability so we will pass on that trade (aggressive traders only).
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