Will leading jobs indicators and a speech by an FOMC member move the dollar today?
Here’s a simple trend setup I’m watching on USD/JPY.
Before moving on, ICYMI, yesterday’s watchlist looked at the short-term range support on EUR/USD. Be sure to check out if it’s still a valid play!
And now for the headlines that rocked the markets in the last trading sessions:
Fresh Market Headlines & Economic Data:
White House press secretary says gov’t expecting jobs slowdown
Major U.S. stock indices close lower for another dayJapanese unemployment rate unchanged at 2.6% as expected
Australian building approvals slumped by 17.2% vs. projected 3.1% decline
Swiss KOF economic barometer dropped from 90.5 to 86.5 vs. 88.3 consensus
Spanish flash CPI slowed from 10.8% to 10.4% y/y
Upcoming Potential Catalysts on the Forex Economic Calendar:
U.S. CB consumer confidence index at 2:00 pm GMT
U.S. JOLTS job openings at 2:00 pm GMT
FOMC member Williams’ speech at 3:00 pm GMT
New Zealand building consents at 10:45 pm GMT
Japanese preliminary industrial production and retail sales at 11:50 pm GMT
Use our new Currency Heat Map to quickly see a visual overview of the forex market’s price action! 🔥 🗺️
What to Watch: GBP/USD
GBP/USD 1-hour Forex Chart
Cable looks ready for another test of its short-term falling trend line. Will it keep holding?
The confluence of resistance levels around the area might be enough to attract pound bears.For one, the trend line coincides with the 50% Fibonacci retracement level near the 1.1800 major psychological mark and a former support zone. To top it off, the 100 SMA dynamic inflection point could add to its strength as a ceiling!
The 100 SMA is also below the 200 SMA, confirming that the selloff is more likely to resume than to reverse. The 200 SMA is even near the 61.8% Fib, which might be the line in the sand for a bearish correction.
Stochastic has some room to climb, which means that the correction could keep going until overbought conditions are met. If any of the Fibs keep gains in check, Cable could slump back to the lows near the 1.1650 minor psychological mark or lower.
There are no major reports due from the U.K. economy, so Uncle Sam’s releases might be the main catalysts for big moves.
Keep an eye out for the CB consumer confidence index, which is slated to improve from 95.7 to 97.6, and the JOLTS job openings report. Upbeat figures could mean more strength for the Greenback and a continuation of GBP/USD’s downtrend.
