Today’s Forex Guide

Ebola affecting the currency market


Oct.17.2014

The forex market is the largest market in the world, and it is the most international market in the world.

So when it comes to movements in the currency pairs,  it is not only the economic data, but also geopolitical tensions and many other factors that we have discussed in our education program.

While investor's risk appetite seems to have been fading in the past two weeks for a variety of reasons, namely global economical growth concerns, and the cautious central banks around the world, the Ebola outbreak seems to also be playing a role.

man scared of ebola Tv headlines news virus currency market stocks down

If you think about it, the major dollar rally of September quickly died down as the first Ebola Patient in the US, Thomas Eric Duncan, was finally diagnosed in Texas and passed away on October 8.

Now as we are hearing that the second patient and Dallas nurse, Nina Pham is in high spirits, the US dollar seems to be pulling back up.

USDJPY daily chart market ebola duncon pham

Of course, this is a combination of the news, market psychology and the overdue market pullback after the harsh uptrend that we discussed in our update last week, "What Goes Up Must Come Down"

Mr. Fibonacci did it again and held the dollar- yen pair right on the dot at its 50% level. So the USD/JPY pair now appears to be moving back up to get on its previous uptrend.

The economic calendar also helped with this move as we got better than expected unemployment claims data yesterday  and Fed Head Janet Yellen's morning speech today. She delivered a strong indictment of rising inequality of wealth and income in the U.S., saying it was creating a vicious circle that was impeding the economic mobility that used to be at the heart of American economic values.

Intraday Forex Technical Levels


EUR/USD 4-hour Forex Dance Floor
EUR/USD 4-hour: Consolidating.

Invest Diva Likes: Short positions below 1.2828 with targets at 1.2753 and 1.2661 in extension.

If Pair Goes Nuts: Above 1.2828 look for further upside towards 1.2903 and 1.2996.

What's up on the Forex Dance Floor: The pair is consolidating at the 50% Fibonacci level at 1.2828 but still unable to break above it.. The RSI is heading down towards the neutrality area.

Supports and Resistances
1.2996

1.2903

1.2828 Pivot Point

1.2753

1.2661


GBP/USD 4-hour Forex Dance Floor
GBP/USD 4-hour: Teasing 38% Fibonacci level.

Invest Diva Likes: Short positions below 1.6114 with targets at 1.6025 and 1.5882 in extension.

If Pair Goes Nuts: Above 1.6114 look for further upside towards 1.6186 and 1.6258.

What's up on the Forex Dance Floor: The pair is teasing 38% Fibonacci level and upper boundary of the Bollinger Bands at 1.6114. The RSI is flat above the neutrality area.

Supports and Resistances
1.6258

1.6186

1.6114 Pivot Point

1.6025

1.5882


USD/JPY 4-hour Forex Dance Floor
USD/JPY 4-hour: Rebound from 50% Fibonacci level.

Invest Diva Likes: Long positions above 105.67 with targets at 106.71 and 108 in extension.

If Pair Goes Nuts: Below 105.67 look for further downside towards 104.63

What's up on the Forex Dance Floor: The pair failed to break the 50% Fibonacci level and is rebounding to the upside with the RSI head up towards the neutrality area.

Supports and Resistances
109.17

108

106.71 Pivot Point

105.67

104.63


USD/CAD 4-hour Forex Dance Floor
USD/CAD 4-hour: Forming a potential Double Top Pattern

Invest Diva Likes: Short positions below 1.1248 with tagets at 1.1164 and 1.1097 in extension.

If Pair Goes Nuts: Above 1.1248 look for further downside towards 1.1384 and 1.1445.

What's up on the Forex Dance Floor: The pair is on an overall uptrend but is facing a pullback while remaining above the Ichimoku cloud. The RSI is around the neutrality area.

Supports and Resistances
1.1445

1.1384

1.1248 Pivot Point

1.1164

1.1097

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