Good morning traders. Here a quick recap of what I am seeing under the Forex trading umbrella.
The Forex has been pretty messy of late. While the dollar based pairs remain trapped within a nasty 4th wave correction, clarity is unfolding. The overnight moves shed light on the likely completion of this messy price action. Unless you are very short-term oriented in here, there is not much of an edge trying to outguess the markets next move.
Below are some morning thoughts on Forex trading setups as we continue to find our way. Have a great day!
Note: the Intra-Day FX Forecast highlights price direction and likely price targets/stops designed for traders looking at 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): Bearish A correction is still underway. Looking for 94.34’ish to provide support here.
- EUR/USD: Neutral I believe the 4th wave correction is complete as the move lower from the Feb 5th highs looks impulsive. Sideways chop is presently unfolding. A break below 1.1269 would suggest the bearish trend has resumed.
- USD/CAD:Cautiously Bullish Last night’s forecast for one more push lower in the Wave 2 correction is proving correct. Need to see 1.2531-1.2518 support hold.
- USD/JPY: Cautiously Bullish Looks like the overnight push lower is complete and it was in 3-waves. A move above 119.97 creates overlap and suggests higher levels towards 120.48+.
- GBP/USD: Neutral 4th wave correction still unfolding, and the thrust higher overnight adds to the complexity of it. The way I see it, the 1.5486 level needs to hold if the overall bearish view is to remain intact. Resistance comes in at 1.5363 & 1.5428.
- EUR/GBP: Bearish Nice thrust lower overnight breaking through support at .7410’ish points towards .7247.
Have a great day and thanks for reading.
Follow Dave on Twitter: @aspentrading10
Author may hold positions in 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.
