Forex Market Outlook
Stocks have now shaken off the ability to rally on bad news and looks like it is rolling over at this time. We expect 900 to be tested as resistance this week. We are looking for the S&P to stay under 900 on a closing basis. If we see that then the turn is in and we will be targeting a move to 800 or so from there. If on the other hand the market manages to close above 900 this week then I would look for a run up to 950 before we get the next “test”. Either way we do not expect the markets to hang around 900 for very long.
EUR/USD:
This pair is still trending sideways and for now we continue to look for spike rallies to sell into. We are not trading this pair as heavily as some of the other majors as the signals here have been mixed. We still could see a push to 1.36-1.38 this week and if we doo we will look to sell into those levels.
GBP/USD:
This pair is also just chopping its way higher and is now holding support above 1.50. We see it being stuck in a range between 1.54 and 1.50 more or less this week. We are sellers above 1.53.
USD/CHF:
Swiss bank continues to manipulate this pair and I am not interested in trying to trade against them so I am frankly not trading this pair until the elephant leaves the room.
USD/JPY:
This pair has struggled as the Yen saw a flight to “safety” with stock market volatility. We see this pair continuing to follow the stock market over the near term.
AUD/USD:
We still have a short bias and are sellers near the 7650 handle. This pair has tried to roll over but early this week it appears we have a short squeeze already so caution is advised.
USD/CAD:
We are looking for dips back towards the 1.16 level to use to add to longs from last week. Still targeting a move back to at least 1.19.
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