All Major pairs are in play as well as AUD, NZD, GBP & EUR crosses
The USD Index bounced back during the North American session but still the majors aren’t far away from where they closed last week and that sets us up for a pretty solid 24 hours of trading.
The only unfortunate thing is the bounce in the USD puts it technically, back in ‘no man’s land’, almost right between last weeks high of 93.42 and yesterday’s low of 92.23. So we lose our cushy entry level on the USD, but the fact its trading mid-range means it will move a lot more freely if there’s any variance in the US data.
So to make cash today plan out your day. If you can’t make a release then don’t worry, just scratch it off your list.
The data related to the USD will impact all majors.
The data related to the other currency pairs will impact that major pair plus the associated crosses.
So there are ‘loads’ of opportunities today. Remember, focus on the pairs that make sense and that have the best technical set up.
I’ve outlined all the action in the session schedule below.
Check our Next Best Trades Watchlist for full details as to which specific pairs we are focusing on.
It all kicks off with the RBA Meeting Minutes so even though I don’t expect much out of the release I’ll prepare for a potential trade on AUDUSD and AUD Crosses.
This is followed up 30 minutes later by a raft of Chinese data. This will also be important for the AUD & NZD.
We’ve got Chinese Industrial Output, Retail Sales & Urban Investment. It’s a bit of a handful and be careful as this data is occasionally leaked prior to the release.
So if you see a quick 20 point move on the AUD or NZD in the lead up to the data release, you know it’s already out in the market and that’s usually a signal to leave it alone.
But if they don’t move and we get significant variance across the numbers, all strong or all weak, then we’ll see some decent moves in the AUD & NZD for sure.
Another beast of a session coming up with loads of potential for EUR & GBP and all associated crosses.
It starts early with German GDP flash estimate first off the rank. This could give EURUSD and EUR crosses and early lead.
Then we have the high impacting UK Employment data where the major focus at the moment appears to be on ‘Average weekly earnings’. This is a big bit of data and the entire globe is waiting to see if these to have fallen dramatically. If they have GBPUSD should move lower very aggressively.
If the UK data is mixed it’ll be an absolute crap fest….. so just make sure you know what the data is before you jump in!
Half an hour after that we have the German ZEW data and more importantly the Eurozone GDP flash estimate & Industrial Production numbers.
To put it lightly we should know where EURUSD is going after these numbers are released!
If the Euro numbers are variant we should have a good trade on our hands. If it’s mixed, then it too will get choppy and be untradeable.
North American Session
This could be an absolute belter if the US retail sales data is variant and also lines up with the UK and Eurozone data (when I say line up I mean, opposite to the UK and Eurozone data).
But stand-alone it’s a big release anyway and if there’s any variance in the data it will add extra momentum to the majors.
The key to this is to not overload yourself and trade more than your account can handle.
Note: All major pairs will be active. If any of the majors already have direction leading into the US numbers then the best trade is in the same direction!
Technical Set Up – What’s Happening with the Majors
The NZDUSD looks to be the only major pair that has clear direction still – which is downwards.
The rest of the majors are either chopping about or fighting against the recent trends.
Today’s Fundamental Drivers
Plan the Trade, Trade the Plan!
The idea of our “Market Insight” is to give you some guidance with your daily preparation.
Your Daily Analysis needs to become habitual – For full guidance on our daily routine click here.
Make sure you don’t waste unnecessary time in front of the screens.
Remember you need to be fresh, confident and ready to trade and by sitting aimlessly in front of your screens you will become stale and uncertain.
The key to your success: Isolate the opportunities that work for you and focus on them.
Don’t worry about things that you can’t make…..chasing them will only cause problems (tiredness & irrational behavior will take over).
Tune up your charts & get ready to trade…..