Tuesday 31 January Daily Forex trading tips: EUR bearish?


Tuesday 31 January Daily Forex trading tips, with BoJ Kuroda making it clear it is too early to discuss a QQE exit strategy. Will ECB President Draghi push for more financial integration? EUR bearish?  

AtoZForex-A brief summary look at the day ahead, with insights into the Daily Forex trading tips.  On the economic calendar today there are five (5) remaining high impact data news events. There is one (two) high impact news non-data based events remaining. Will traders be bearish on EUR?

@1:30pm GMTCanadian GDP m/m, markets expects an expansion to 0.3%

@3:00pm GMTUS CB Consumer Confidence, expected to show a contraction to 112.6.

@9:45pm GMTNew Zealand Employment Change q/q,  forecast for 0.8%

@9:45pm GMT – New Zealand Unemployment rate,  forecast for 4.8%

@10:35pm GMTBoC Gov Poloz speaks, Due to speak about the art of making monetary policy at the University of Alberta School of Business

Tuesday 31 January Daily Forex trading tips

AtoZforex Hint: Do not trade on a single news event, look at the total picture when news releases are at similar times. 

 # 1 EURUSD – Tuesday 31 January Daily Forex trading tips

Fundamentals –  Focus remains on ECB, Brexit and elections in Europe. With populism on the rise, uncertainty hangs over European status quo.

Economic side  There are no high impact economic data releases today, however, earlier ECB President Draghi delivered opening remarks at a joint conference by the European Central Bank and the European Commission, in Frankfurt

Technicals Intraday (H1 chart) – Currently, price is trading above the hourly 20sma and 100sma,  with 20sma sloping up and 100sma sloping flat. The 20sma is below the 100sma at the time of writing. MACD histogram and signal line are in positive territory and RSI is in the neutral zone and moving on the upside. The 1.0772 is a strong resistance level just above the 23.6% Fibonacci retracement zone. Last Friday price dropped through several support levels to a low of 1.0657 before rebounding to a high of 1.0740 level yesterday.  EUR sharply fell to test the 50% Fibonacci retracement zone at a low of 1.0620 level before recovering most of its losses late yesterday to its current price.

Tuesday 31 January Daily Forex trading tips: EUR bearish? Daily Forex Trading Tips for EURUSD H1 (click to zoom in)

Current view

We still hold the view that for further extension to the upside, only a clear break above the 1.0772 level would indicate further bullish bias.  With further extension towards 1.0810-15 on the upside.  There is a strong resistance zone between 1.0860 to 1.0875. On the down side, only a clear break below the 1.0650 level would support a downward move to 1.0560 a strong support level.

Fridays Fx order Stopped out – SELL LIMIT @ 1.06747; SL @ 1.07162; TP@ 1.06162;

Potential Fx pending order – BUY LIMIT @ 1.0694; SL @ 40pips; TP@ 60pips

(Long term Fx pending order – SELL LIMIT @ 1.0855; SL @ 1.09211; TP@ 1.0768)

Please use correct risk and money management in line with your account size and draw down plan. These are not recommendations, you must carry out your own due diligence. 

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#2 GBPUSD – Tuesday 31 January Daily Forex trading tips

Fundamentals –  Brexit negotiations still main driver for the GBP and will remain so for the next two years. Meeting with President Trump appears to have been successful, with UK PM inviting USA President to the UK.

Economic side- There are no high impact economic data releases today. Any bad bad UK news, expect GBP to drop as the pair is politically driven.

Technicals Intraday (H1 chart) – Currently, we have price testing the 20sma . The hourly 20sma is sloping down, while the 100sma is sloping slightly down, with the 20sma below 100sma.  MACD histogram and signal line are in bearish territory. RSI has moved back up into the neutral zone.  The 1.2530 has now become a key resistance level, which also at the 38.2% Fibonacci retracement zone.  A clear break below the 1.2465-00 level will see a move towards the 1.2410-00 level near the 50% Fibonaaci zone at 1.2401. If price break below 1.2385-00 level, we can expect further bearish extension towards the 1.2275-70 level near the 61.8% Fibonacci retracement zone,

Tuesday 31 January Daily Forex trading tips: EUR bearish? Daily Forex Trading Tips for GBPUSD H1 (click to zoom in) 

 Friday’s Fx order TP1 reached yesterday morning: BUY LIMIT @ 1.2533; SL @ 1.2489; TP1 @ 1.2606;

Possible Fx pending order: BUY LIMIT @ 1.2495; SL @ 40pips; TP1 @ 60pips; 

Possible Fx pending order: SELL LIMIT @ 1.2530; SL @ 40pips; TP1 @ 60pips; 

Please use correct risk and money management in line with your account size and draw down plan. These are not recommendations, you must carry out your own due diligence. 

Think we missed something? Let us know in the comments section below.

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