25 July, AtoZForex – Last week we saw a steady appreciation of the USD. To kick start today’s Daily Forex Trading Tips; this week we have the FOMC, which might give further indication as to whether we will see a rate increase this year or not. After ‘Brexit’ the market has been trying to stabilise and we also stocks at highs employment data improvement, we have an interesting week ahead where we may see a slight pullback on the USD before continuing to appreciate. We had G20 meetings over the weekend. However, the meetings were overshadowed by events in Germany, dominating most news channels.
High impact news – 25th July 2016
#1 GERMANY -@ 9:00am BST
Today we have a single high impact news event, which is the German Ifo Business Climate – Previous: 108.7; Forecast: 107.7; Currency affected: EUR
Forex Trading Tips – previous two months we have seen positive figures greater than what was forecast, however, this month the figure is forecast as being negative. If we see a figure that is greater than that forecast, expect EUR to appreciate. This data is highly respected because of the size of the survey (7000 businesses) asking to rate the relative level of current business expectations for the next six (6) months.
Currency Pairs – Daily Forex Trading Tips
#2 EURUSD trading tip
With the expectant German Ifo Business Climate data this morning, will be the order of the European session. Market expectancy is to the downside for the EUR. Look for a possible move to the upside if data is better than expected. However, bias is on the SHORT side, as the Euro continues to trend lower. Economic data is mixed and ECB is always saying they stand ready? For what one always wonders. The real test with stress test results of the Italian banks.
Forex Trading Tips – Key level is the 1.10 level and if this breaks expect further downside.
#3 GBPUSD trading tip
With the expectant Manufacturing PMI and Service PMI data last week showing both these sectors suffering after the Brexit decision. The GBP was relatively steady. The consolidation period due to Brexit , should be coming to an end in the near future and expect further downside.
Forex Trading Tips – Look to SHORT on the break of the 1.3050 level?
#4 USDJPY trading tip
Expectancy is sideways movement with a possible downside move. Market expects further easing from BoJ later in the week. Bias is on the SHORT side
Forex Trading Tips – SHORT from 105.20 and LONG from 100.05 level
#5 USDCAD trading tip
We saw continued slide in the price of oil, leading to USDCAD to appreciate and test the 1.3150 level. Although there was no break above this level, time to be patience and watch oil also.
Forex Trading Tips – LONG from 1.3150 level
#6 AUDUSD trading tip
We saw the AUD depreciate on the RBA’s ‘dovish’ stance and kept door open to a rate cut in August. Market expectancy is continued downside for the AUD.
Forex Trading Tips – SHORT to the psychological level of 0.7400. LONG opportunities from 0.7250 level
#7 USDCHF trading tip
Concluding the Daily Forex Trading Tips, the focus is on USDCHF. Where a further rate cut is expected later in the year by the SNB. From a technical stand point, we see price in sideways movement.
Forex Trading Tips – If you like trading this pair, my bias would be on the LONG side.
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