Forex Signals Brief for Jan 23: ECB in Focus

US Market Wrap

US markets continued their quiet week with the major indexes finishing little changed on the prior day.

Again, US President Donald Trump made headlines as he spoke about global trade, but there was not much to write home about.

The key event of the day was the BOC, who left rates unchanged, but did have a more dovish tilt when it came time to comment on the decision. As such, the USD/CAD saw some sharp upside, which has continued in Asian trade.

Today’s Agenda

The focus today, will be very much on Europe as the ECB hands down its decision on interest rates.

While it is broadly expected that the members will maintain the status quo, there is growing interest in Christine Lagarde’s strategic review and what that might mean for monetary policy going forward.

Negative rates have effectively been a disaster for much of Europe and have put the ECB and Eurozone in an impossible position. So how exactly she plans to get out of it is on many peoples mind.

As a result, the EUR/USD will be a trade to watch today, especially after her comments.

Forex Signal Update

The FX Leaders Team closed three straight winners yesterday, as the markets really went our way.

AUD/USD – Active Signal

We are currently short the AUD/USD based on the technicals, however, we have run into a better than expected jobs number. We have protection here at 0.6900 so this will be one to watch here today.

EUR/CHF – Active Signal

The EUR/CHF tried to bounce but couldn’t really make any ground, before retracing. We remain long here looking for a bigger move.

Cryptocurrency Update

We’ve been waiting and sitting on our hands with BTC as price is still under the $9,000 resistance level for now.

That said, we have seen some weakness coming in and price hasn’t really been able to rally in any form. In fact, it could be argued we’ve seen a lower high at $8,800.

At the moment, we are seeing support at $8,500, so a break of that level could be a very nice momentum short.