Risk-Off Spasm Reverses, EUR Breaks 1.2000
FX Closing Bell is a daily webinar hosted by Tyler Yell, CMT with the intent to look at key market themes within Foreign Exchange, Commodities, and Fixed Income. We look at the current price action in these key markets alongside any news that may be making waves in the markets or could lead to a pending opportunity that I feel deserves your attention.
To get a sense of where capital is flowing, we pull on insights from futures, spreads on the yield curve, and options. Looking at how multiple markets are pricing in future activity can help us understand where the pressure is building. We also touch upon the technical analysis and sentiment analysis to give you a well-rounded view of what is happening in markets that could lead to your next trade as we hope to make it a good one.
Discussions include –
- Gold price reverses after touching 9-month high as USD, and equities recover.
- Dollar Index touches lowest level since January 2015, but reverses higher taking USD/JPY away from April exteme low of 108.13.
- Uncertainty remains around Crude Oil as Texas faces more Harvey flooding that further reduces refiner capacity.
- Top Chart: Levels to watch on EUR/USD to see whether a larger reversal is in process
Special note: A technical short-cut that I utilize to find the best trading opportunities and the strongest trends is to match the strongest currency against the weakest. I then look for opportunities to buy the strongest against the weakest when a technical signal is triggered. By matching up strong and weak currencies, we do not guarantee a successful trade, but we do improve our confidence in trading in the direction of the strongest trend at the moment. Traders should keep an eye to see if a strong currency begins to weaken or a weak currency begins to strength. I cover these developments on FX Closing Bell.
If you missed this webinar and would like to know about future events, including the next scheduled FX Closing Bell webinar, you’ll find that all here.
--- Written by Tyler Yell, CMT, Currency Analyst
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Contact and discuss markets with Tyler on Twitter: @ForexYell