Today’s Forex Guide

Jackson Hole Summit Trading


Aug.22.2014

As I mentioned in our previous updates, the Jackson Hole Summit has been taking place since Thursday and it will go over till Saturday.

No it has nothing to do with the late Michael Jackson, and the summit is not taking place in an actual hole.

It is a symposium held in a ski resort in Jackson Hole, where the world’s financial leaders and central bankers won’t just be cruising down the slopes or swimming in the lake for three days. Instead, they are set to discuss current economic issues, potential action steps, and their global outlook

This annual forum has been held since 1978 and has been sponsored by the Federal Reserve Bank of Kansas.

jackson Hole Summit

Hot Jackson Hole Topics

  • Fed Head Jannet Yellen is expected to give clearer clues on the timing for interest rate hikes
  • Slowdown in employment trends especially in major economies like the UK
  • Geopolitical tensions including conflicts in Russia, Gaza, and Iraq
  • Potential repercussions of the sanctions imposed on Russia and by Russia

How to Trade the Jackson Hole Summit

Short term traders... If you are in the US, you should expect some volatility  at 10 AM EST and 2:30 PM EST but other than that, it shouldn't affect your trades today that much. We're going to have to wait for Janet Yellen so speak at 10 AM EST and Mario Draghi at 2:30 PM though. It's a bank holiday weekend in the UK, so expect London traders to square positions ahead of these statements and not leave anything to chance over the announcements and closed exchanges on Monday.

 

Long term traders around the world... watch out for potential gaps if you’re keeping trades open over the weekend! This event could set the tone for longer-term price action so make sure you keep your eyes open for any important announcements.


 

 

Technical Analysis

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

Invest Diva likes: Short positions below 1.3286 with targets at 1.3228 and 1.3120 in extension.

If pair goes nuts: Above 1.3286 look for further upside with 1.335 and 1.3424 as targets.

What’s up on the forex dance floor: The pair is rebounding from the Bollinger Band with the RSI is below the neutrality area.

Supports and resistances
1.3637

1.3520

1.3424 pivot point

1.300

1.3120

 
USD/CHF 4-hour Forex Dance Floor
USD/CHF 4-hour: Move up.

Invest Diva likes: Long positions above 0.9112 with targets at 0.9130 and 0.9155 in extension.

If pair goes nuts: Below 0.9112 look for further downside with 0.9064 and 0.9050 as targets.

What’s up on the forex dance floor: The pair is teasing the support level at 0.9112 with the RSI above the neutrality area.

Supports and resistances
0.9155

0.9130

0.9112 pivot point

0.9050

0.9013
 
USD/JPY 4-hour Forex Dance Floor
USD/JPY 4-hour: Consolidating.

Invest Diva Likes: Short positions below 103.92 with targets at 103.26 and 102.84.

If Pair Goes Nuts: Above 103.92 look for further upside towards 105 in a long run.

What's up on the Forex Dance Floor: The pair is teasing the resistance level at 103.92 and formed bearish Doji candle, which indicated market indecisiveness. The RSI is in overbought zone.

Market News:
Over in Japan, Tokyo government is planning to start using some of its tax income reserves to play the stock market. The authority is set to compile a panel of expert investment advisers and start to invest a portion of its four trillion yen reserves as early as next month. Currently the reserves earn little to no interest as they sit in government bonds, so we can half see the appeal of yield, but we can't see this plan going down very well with the taxpayers.

Supports and Resistances

105

103.92 Previous Target Reached

101.04

100 Pivot Point

97
 

Long term traders. Don’t sweat the small losses and look at the big picture. Short term traders,
invest responsibly. And wait, are we hooked up on the social media? To get the most recent intraday updates, don’t forget to follow Invest Diva on Twitter and Facebook.

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