Free Forex Signals – Marked by Inconsistent Volatility

EURUSD Daily Analysis: *All eyes, no matter what their attached mouths are saying, are glued on September 17th - the date that the Fed will reveal its decision on whether to raise interest rates or stay the course with its unprecedented zero-interest rate policy (ZIRP). If the Fed's past rhetoric is to be trusted, then interest rates will rise in accordance with their guidance, which should be very bullish for the USD in the short-term (bearish for EURUSD). There are no guarantee, however, that the Fed will indeed raise interest rates, especially in light of recent moves by China to devalue its own currency. The thinking is that the combination of a depreciating yuan and an appreciating USD will be a heavy blow to the US export economy.

*This will be a recurring topic in the daily posts leading up to the September 17th meeting.

Technically, the pair is mildly bullish in the long term, mildly bearish in the medium term, and mildly bullish in the short-term. The keyword here is 'mild' - the exchange rate has been characterized by extreme volatility swings and very little in the way of consistent trend. The key area we are watching is 1.14 - in a chart of inconsistency 1.14 sticks out as a place where the pair has consistently found heavy selling (in May and June especially). Price did sustain a break above 1.1450 in August in a volatile rally, however that has since been sharply sold into, bringing us back down to 1.12.

4h Chart

Our Preferred Trades*: In the middle of all this volatility we remain flat without a high probability setup in either direction. We will begin looking for signals to get short around 1.14 with confirmation, or long near 1.10 with confirmation. Aggressive traders could look to 1.1100 as a support level - though a break below should quickly open up 1.10.

Long-term Trend Analysis Chart

Yesterday's EURUSD SwingPRO Signal Result: No trades triggered yesterday.

Today's SwingPRO Signal: Flat.

*CandlePRO: CandlePRO can be used in conjunction with our daily analysis and "our preferred trades." For example, if we prefer "going short" or "selling a rally" then we would look for bearish candlestick signals after a rally or near resistance levels. Alternative if we prefer "going long" or "buying a dip" then we would look for bullish candlestick signals on price drops or near support levels.

Today's Important News Events:

READ ME: How to Use PipHut's Signals
Forex Income Calculator

Leave a Reply

Your email address will not be published. Required fields are marked *