Here’s a quick update on the Forex trading environment. The price action in the dollar based pairs suggests that some further consolidation/corrective action is underway.
I think this will present us with trading opportunities in USD/JPY, USD/SGD (longs) as well as shorts in EUR/GBP
Note: the Intra-Day FX Forecast highlights price direction and likely price targets/stops designed for traders looking at Forex trading opportunities over the next several hours. These are not official trade recommendations, merely guidelines and forecasts
North American Short-Term Forex Trading Outlook:
- Dollar Index (DXC): Neutral price action over the last couple of days has been pretty sideways and labored. No need to question the overall trend higher, but not really seeing a catalyst right now that gets me interested in being long dollar pairs.
- EUR/USD: Neutral mirror opposite of DXC – I would not be surprised to see prices begin moving higher (corrective). A break above 1.2275 could put that in motion
- USD/CHF Neutral looks like 5-waves higher off th December 4th lows is in place – a modest correction lower towards .9765 seems in the works.
- USD/SGD Cautiously Bullish looking for a modest move lower towards 1.3164-1.3117 before the uptrend resumes.
- EUR/GBP Cautiously Bearish was the completx 4th wave triangle completed on the Dec 4th highs? A break below .7830 would confirm that, however, we still might see one more modest leg higher before prices make a sustained move lower.
- USD/JPY Cautiously Bullish with year-end approaching and growth slowing in Japan, continued QE seems likely. Let’s consider this modest correction off the overnight highs as a way to get long. I expect support in and around the 120.30 to 119.37 area.
Trade safe, and always have a plan.
Follow Dave on Twitter: @aspentrading10
No position in any of the mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
